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HRM in Ford Motor Company Report

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Updated: Jun 22nd, 2019

Alignment of HRM and business strategies

Ford Motors is a well-established automobile manufacturer across the globe. It has a long history of successful operations. In order to remain profitable amidst tough competition in the automobile industry, the company undertook a number of restructuring efforts as part of its business strategy (Bayou & de Korvin, 2008).

From 2006 to 2012, the company executed the ‘One Ford’ business strategy. The Human Resource (HR) department job positions at Ford Motors include personnel relations, workforce planning and recruiting, business operations and labor relations.

The main roles of the HR department entail recruiting/hiring, training, capacity building, promotions, demotions and firing of employees. I would prefer to work as a labor relations officer because I am diplomatic and can adequately bridge the gap between employees, employer and trade unions.

After Alan Mulally assumed the CEO’s position of the company in 2006, he initiated the growth stimulation plan under the banner of ‘One Ford’ strategy (Hiraide & Chakraborty, 2012). First, this business strategy outlined the importance of a competent and well-motivated workforce in the growth objectives of the automobile company.

There was urgent need to create a winning team that would boost the profitability of the company. Mutual participation in key decision-making processes was seen by the management of the company as a major motivating factor. Delivery of results was the mandate of individual employees even though tasks were assigned to teams.

Teamwork experience is the noblest approach through which the company markets its human capital. Second, the whole global enterprise of the Ford Motors adopted a single plan as part of the ‘One Ford’ strategy. The set performance objectives were also aligned with the global plan of the company.

The ‘one plan’ concept was meant to avoid any form of ambiguity in the course of operations. As much as some level of success was attained through the autonomous business units, the management thought that the system was quite inefficient in delivering desired results. The ‘one plan’ agenda would be sustainable for a long period.

Hence, a single, unified entity replaced the disparate units when the ‘one plan’ was embraced and adopted by the company. In order to implement the ‘One Ford’ business strategy, the company began by securing adequate finances.

A total of $23.5 billion was secured by the company towards the end of December 2006. This was indeed a major strategic financing that remarkably boosted the liquidity of the firm. Besides, another 4.95 billion dollars was secured by Ford as part of its convertible debt since it was necessary for the company to cushion itself against unforeseen risks.

The automotive business was also restructured alongside the ‘One Ford’ strategy. The latter was necessary because the company needed to be in line with the changing tastes and preferences of consumers, high fuel prices, and low demand for its products.

Restructuring also entailed minimizing operational costs by close to $5 billion. As it stands now, the company is still pursuing the broad objective of hastening the production and marketing of new products (Chuang & Liao, 2010).

Ford Motors can establish a number of HR management strategies in order to improve its competitive strategy. For instance, the department should attract and mobilize the unique abilities of employees (talent) in order to enhance the adopted business strategies.

Talent management can swiftly align HR roles with business strategy. Furthermore, building performance capability ensures that the set strategies are successful. It is the role of the HR department to undertake capacity building and training of employees on a regular basis.

Other alignment methods include building effective leadership, good governance, and providing coherence. The company can increase diversity at workplace by holding managers accountable, introducing mentoring schemes, developing and promoting organizational culture, flexible working for all employees, and promotion of minority networking groups (Ilmakunnas & Ilmakunnas, 2011).


Bayou, M. E., & de Korvin, A. (2008). Measuring the leanness of manufacturing systems-A case study of ford motor company and general motors. Journal of Engineering and Technology Management, 25(4), 287.

Chuang, C., & Liao, H. (2010). Strategic Human Resource Management in Service Context: Taking Care of Business by Taking Care of Employees and Customers. Personnel Psychology, 63(1), 153-196.

Hiraide, N., & Chakraborty, K. (2012). Surviving the global recession and the demand for auto industry in the U.S. – A case for ford motor company. International Journal of Economics and Finance, 4(5), 85-93.

Ilmakunnas, P., & Ilmakunnas, S. (2011). Diversity at the workplace: Whom does it benefit? De Economist, 159(2), 223-255.

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