Introduction
Ford is one of the world’s largest automobile manufacturers. It offers a plethora of Automobiles and associated technologies, ranging from cars to trucks, SUVs, plane components, military hardware, and more. The company originated in the United States and has subsidiaries in multiple locations, including Europe, South Korea, China, and elsewhere. Its production output exceeds 4 million vehicles per year, and it is considered the fifth-largest automobile producer in the world.
Nevertheless, over the past several years, it has faced challenges both from within and outside that have threatened its dominant market position. The company is undergoing a restructuring effort while weathering the aftermath of the COVID-19 crisis, as well as the changing realities of human relations efforts. This paper aims to identify Ford’s global impacts, the environmental constraints the company faces, its strategy to overcome them, and various matters associated with outsourcing opportunities.
Challenges
The international impact Ford faces right now is associated with restructuring its operations. It is caused by increased foreign competition, particularly from countries such as South Korea and China (Wang et al., 2021). In addition, customers are increasingly interested in fuel-efficient vehicles due to growing concerns about the environmental impact of gasoline-based vehicles, combined with global fuel shortages. Finally, the ongoing attrition rates in employees across the entire Western economy make the subject of retention and human resources all the more prominent.
When talking about the marketing environment, the two ongoing issues and constraints that Ford faces are the migration of consumers and employees towards companies with better CSR and human development structures (Wang et al., 2021). In essence, it is harder to find individuals who are ready to work and occupy their positions without significant efforts on the part of the company to retrain them. As such, developing and maintaining one’s talents are a consequence of the company’s environment.
Management Strategy
Ford’s strategy to manage these impacts revolves around the organization and personnel planning. The company strives to do more with less, thereby increasing the efficiency of its expended resources while promoting and nurturing its talent domestically. This is achieved by allowing employees to career plan and track their progress, as well as making the requirements transparent and training fully available to those who wish to pursue a lucrative career (Wang et al., 2021).
Loyalty is a significant metric in the progression chart, as Ford wants to retain its talent. Their practices are guided by research, as outlined by Singh (2019), who states that a clear career plan and criteria for promoting someone positively reflect employee morale. It enables planning for the future and provides everyone with fair rules to follow.
Forecasting and Demand Methods
Ford utilizes technology in their forecasting and demand methods. Namely, the company engages its customers online, having offered a build-a-car app, among others, to anticipate what their customers are looking for in an ideal vehicle (Wang et al., 2021). Such a move enables the company to purchase parts and modify existing models, while informing the development of future products. Ford recognizes that what individuals present in the build-a-car program is what they often cannot find in their own vehicles, which enables the company to deliver what people want.
Succession Planning and Career Opportunities
The company utilizes a T-method for planning and career opportunities. The horizontal part of the letter represents the qualities and qualifications of all employees currently occupying a specific position (Wang et al., 2021). If individuals in other positions whose skills match or exceed those of the existing employees are to be considered for promotion, they should be considered for that position. The hopefuls are illustrated by the vertical line in a dedicated chart.
Singh (2019) points out a few weaknesses in that approach—namely, related to the fact that it focuses solely on employee skills and experiences within the company without considering their whole portfolio. This makes individuals and talents acquired from other places less willing to engage with Ford since they would have to start from the bottom. Naturally, this leads to a growing need for flexibility to accommodate such occasions.
Outsourcing Opportunities
Some of Ford’s significant outsourcing opportunities include IT and logistics. IT and tech support do not require the company to have a dedicated office in every country it expands into. Instead, it can be done in a centralized fashion in an English-speaking country where wages are notably lower than in Canada (Wang et al., 2021). One such country is India, where numerous English-speaking individuals possess a high level of education in IT and engineering, making them ideal candidates.
On the other hand, logistics can be outsourced to companies with truck fleets, saving Ford the trouble. China presents another opportunity for outsourcing, thanks to its well-developed production lines and reputation as the world’s outsourcing hub. Nevertheless, doing so is associated with specific HR risks to employee morale.
Human Resource Information System in Outsourcing
Using analysis and the Human Resource Information System (HRIS) can help the company identify which positions have a lesser impact on the overall quality of production compared to others. These positions could be easily downsized to save expenditures. Additionally, the market performance of certain products can be evaluated to determine which ones should be discontinued due to a lack of demand (Wang et al., 2021).
Finally, outsourcing can be done to branches where direct control over quality can be maintained remotely or those that do not play a primary role. Singh (2019) notes that outsourcing management must be undertaken carefully, as it can significantly impact company morale if not executed properly. Naturally, it may reveal the staff’s weaknesses in the company culture, thereby undermining the leadership’s and management’s authenticity and devotion to the unified corporate goals and objectives.
Moreover, employees may view themselves as expendable since they are unsure when a third-party contractor might replace them. This might result in them being considered for opportunities in companies that do not engage in similar practices (Singh, 2019). Being open about reasons and company plans is among the HR tools to address burnout and disloyalty stemming from perceptions of company practices. Furthermore, its direct connection to changes in employee turnover is significant, indicating that HR’s methods are crucial to how workers perceive their experience within the company.
Conclusion
Ford is facing significant HR challenges in mitigating risks and adapting to new market realities. Its current practices enable clear career paths, cost savings through outsourcing, and foster loyalty among the remaining members. Nevertheless, it should focus more on developing sturdy portfolios to give workers assurance for the future and limit their outsourcing practices to non-essential tertiary tasks. Should this be accomplished, Ford would find itself perfectly ready to weather the storm.
References
Singh, D. (2019). A literature review on employee retention with focus on recent trends. International Journal of Scientific Research in Science and Technology, 6(1), 425-431. Web.
Wang, Z., Li, W., Bian, K., & Yang, S. (2021). Analysis of improving the future business policy of Ford Motor Company. World Scientific Research Journal, 7(1), 51-55. Web.