Organizatio nal Structure and Design – Ford Motors Project Report discussing the Theories and Concepts of Organizational Structure and Design of Ford Motor Company !ith respect to its Dealer in the "#$ i%e% #l Tayer Motors%
#d&anced Organizatio nal 'eha&ior – M(T ))*+
Ford Motor Company
Organizational Structure and Design – Ford Motor Company
Institution: Troy "ni&ersity ,TS Sharjah Campus
Course: #d&anced Organizational 'eha&ior – M(T ))*+
Instructor: Dr Faroo- .han $mail/ faroo-0agu%ac%ae
Group Members: M% "sman Ra1-ue #hmedshah 2adeem 'aloch "sman Moin Sumayya
Date: June 2! 2"#"
$re%ace
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Ford Motor Company
This report ha&e 4een !ritten on a research on the organizational structure and design of Ford Motor Company to assist and prepare the students to dra! upon the theories and concepts in&ol&ed in the practical implications an organizational structure and design of an organization% The report e5amines and focuses on the management le&els span of control duties and responsi4ilities of top management and the hierarchical structure of Ford Motor Company% 6ith the help of detailed structure 1gures an ela4orati&e study ha&e 4een prepared to clearly de1ne and analyze the implications of an organizational structure and design%
M& 'sman
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Ford Motor Company
(able o% Contents
Introduction
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Introduction to Ford Motor Company
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Ford7s 8ision
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Ford7s Mission
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:istory
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#l Tayer Motors
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+iterature ,e-ie.
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Met0odology
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,nter&ie!
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,nternet
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nalysis and ,esults o% data
Organizational Structure of Ford Motor7s Top Management
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Organizational Structure of #l Tayer Motors
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#l Tayer Motor7s Di&isional Structural Design
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Chain of Command
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Span of Control
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Mechanistic &s% Organic Organizations
Summary ,e%erences
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Ford Motor Company
Introduction Organizational structure and design of Ford Motor Company is discussed and ela4orated in the report% The organizational structuring and designing is the process of structuring human and physical resources in order to accomplish organizational o4jecti&es and in&ol&es di&iding tasBs into jo4s specifying the appropriate department for each jo4 determining the optimum num4er of jo4s in each department and delegating authority !ithin and among departments% One of the most critical challenges facing managers today is the de&elopment of a responsi&e organizational structure that is committed to -uality hence an organizational structure and design of any organization must 4e clearly aligned to achie&e an organization7s mission and &ision% The frame!orB of jo4s and departments that maBe up any organization must 4e directed to!ard achie&ing the organization7s o4jecti&es% The organizational structure to 4e de&eloped in an organization comes out as de&eloping mode o&er time% #ny organization similar to Ford Motor Company tends to change the structure adding on the management le&els !idening or narro!ing the span of control adopting centralization or decentralization in an organization and de&eloping the chain of command for the reporting relationships in an organization% Organizational structure and design are de1ned as follo!s Organizational structure – is the formal frame!orB 4y !hich jo4 tasBs are di&ided grouped and coordinated% Organizational design – is process of de&eloping or changing an organization7s structure% The application of the theories and concepts of an organizational structure and design are discussed in the matter follo!ed%
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Ford Motor Company
Introduction to Ford Motor Company Ford4s 5ision To 4ecome the !orlds leading Consumer Company for automoti&e products and ser&ices%
Ford4s Mission 6e are a glo4al family !ith a proud heritage passionately committed to pro&iding personal mo4ility for people around the !orld% 6e anticipate consumer need and deli&er outstanding products and ser&ices that impro&e peoples li&es%
Ford Motor Company 4egan a manufacturing re&olution !ith its mass production assem4ly lines in the early 3?@@s% Today Ford Motor Company is a glo4al automoti&e industry leader 4ased in Dear4orn Michigan !ith nearly A@@@@@ employees and 3@> plants !orld!ide% ,t manufactures and distri4utes automo4iles in +@@ marBets across si5 continents% Ford in the Middle $ast is 4ased in Du4ai% 6ith a team comprising &arious nationalities Ford Middle $ast represents true multicultural !orB en&ironment% The Middle $astern team primarily supports the sales marBeting and customer satisfaction operations of all Ford Eincoln and Mercury importer dealers in the (CC <'ahrain .u!ait Oman Gatar Saudi #ra4ia "#$= Ee&ant
6istory Ford Motor Companys history in the Middle $ast goes 4acB to nearly ;@ years% The companys local importerdealers operate more than 99 facilities in the region and directly employ more than )@@@ people the majority of !hom are #ra4 2ationals%
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Ford Motor Company
Ford 1rst appeared on the #ra4ian Peninsula !ith the F3 picBup trucB also Bno!n to most #ra4s as the Red TrucB or the J!anetteJ – in reference to its 3ton capacity and >cylinder engine% The Ford FSeries trucBs ha&e ser&ed as the !orBhorse of countries around the !orld e&er since% The FSeries is the 4estselling trucB on the planet for the past +> consecuti&e years% # signi1cant milestone in the history of Ford Middle $ast !as reached in +@@3 !hen the Ford Dri&e communications strategy !as launched in the region% This strategic mo&e underscored an aggressi&e repositioning of the Ford 4rand in the (CC !hile highlighting its heritage in the region and the 4ond the 4rand had !ith the people of #ra4ia% Relia4ility and sta4ility are the !atch!ords of the centuryold automaBer% 6ith its emphasis on the genuine nature of the 4rand and connection !ith the heritage of the region the Dri&e campaign played a &ital role in strengthening Ford7s local presence% ,n&esting in Customer Satisfaction Ford Middle $ast and its net!orB of dealer partners are constantly in&esting in deli&ering higher le&els of customer satisfaction across the region% Since +@@A alone Ford Eincoln and Mercury importerdealers ha&e in&ested o&er "SD3@@ million in facilities and net!orB e5pansion projects especially in Saudi #ra4ia and the "nited #ra4 $mirates%
l (ayer Motors Major dealer of Ford in the "nited #ra4 $mirates is #l Tayer Motors deli&ering Ford &ehicles to the local consumers since 3?>+% #l Tayer Motors !as esta4lished in 3?>+ and represents major $uropean and #merican automo4ile manufacturers such as Eand Ro&er Haguar Ford Eincoln Mercury Ferrari Maserati and SpyBer across the "#$% #l Tayer Motors portfolio also includes commercial &ehicles D#F trucBs in the "#
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Ford Motor Company
+iterature ,e-ie.
Pre&ious research reports conducted 4y uni&ersity students and internet periodicals journals and !e4sites are referred in the report on Ford Motor Company7s organizational structuring and designing implications% Re&ie!ing the literature !as of dominant importance although there ha&e not 4een any speci1c research conducted on the relati&e topic for research% The literature re&ie!ed includes the internet 4ooBs periodicals and researches contrasting the organizational structure of Ford Motor Company% The follo!ing is gi&en the list of referred literature for the research/ 3% MarBeting research 4y the Troy "ni&ersity ,+# group 4ased on the marBeting plan applied 4y the Ford Motor Company% Organizational Structure de&eloped in the report !as referred% +% Ford Motor Company !e4site http/KK!!!%ford%com A% #l Tayer Motors !e4site http/KK!!!%altayermotors%com )% 6e4site referred to analyze the parent company !e4site organizational chart http/KK!!!%cogmap%comKchartsKfordmotorcompany 9% Management 4y Mary Coulter and Ro44ins Prentice :all Pu4lication +@@+% ;% Organizational Theory Design and Change 4y (areth Hones ;th $dition%
Organizational structure and design in reference to Ford Motor Company and its Dealer in the "nited #ra4 $mirates #l Tayer Motors are focused in the report !ritten% The literature re&ie!ed has e5ploited the Bno!ledge 4ase a4out the analysis of the organizational structures and their implications in *
Ford Motor Company
corporate go&ernance of an organization% The literature facilitates the understanding and e5planation of the 4asic concepts theories and principles associated !ith the designing of an organizational structure and its implications for organizational management%
Met0odology The methods de&ised to collect and generate data for analysis are mentioned 4elo!/
Inter-ie. 7$rimary8: # primary source for the collection of data !as mainly inter&ie! !ith #l Tayer Motor7s oLcials amongst !hich Melanie Da&idson !as assigned to 4e inter&ie!ed for the speci1c topic in -uestion i%e% Organizational structure and design of #l Tayer Motors% The Guestions designed !as short and of su4jecti&e nature to ful1ll the research re-uirements% The ans!ers to the -uestions !ere e5amined and scrutinized to de&elop the organizational design 4eing follo!ed 4y #l Tayer Motors% The organizational chart !as pro&ided 4y Melanie Da&idson for the analysis of the design% The Organizational design consisted of 9 Bey elements analyzed Departmentalization the chain of commands the span of control and decision maBing style
Internet 7Secondary8: The Secondary source of information for the collection of data for the report !as the ,nternet% Se&eral Bey areas of the organizational structure !ere e5plored to e&aluate the design and the hierarchical structure of Ford Motor Company and its "nited #ra4 $mirates dealer #l Tayer Motors through the internet%
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Ford Motor Company
nalysis and ,esults o% data
Organizational Structure o% Ford Motor4s (op Management $5ecuti&e Chairman 6illiam Clay Ford C$O
99C'(I59 5IC9 $,9SID9;( #lan Mulally Ford of $urope Premiere #utomoti&e (roup Chairman
President The #mericas MarB Fields
Chief Financial OLcer
President ,nt7l Operations
Don R% Eeclair
MarB #% Schulz
G,O'$ 5IC9 $,9SID9;( Chairman C$O Ford Motor Credit Company
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President C$O% Ford of $urope Hohn Fleming
2% #merican MBtng Sales Ser&ice Francisco Codina
Corporate :uman Resources
Product De&elopment the #mericas
Ford Motor Company
Design Chief Creati&e OLcer
Corporate #Nairs
#sia Paci1c and #frica
aid OjaBli
(lo4al Product De&elopment Chief Technical OLcer
S9;IO, 5IC9 $,9SID9;( Controller Peter Daniel
Chief MarBeting OLcer 2on e5ecuti&e Chairman 8ol&o Cars :ansOlo& Olsson
(lo4al Purchasing Thomas .% 'ro!n
(eneral Counsel Da&id Eeitch
Customer Ser&ice Di&ision Darryl '% :azel
Organizational Structure o% l (ayer Motors #l Tayer Motors is the main dealer of the Ford Motor Company in the "nited #ra4 $mirates engaged in the import sales and the customer ser&ice of Ford Haguar Eand Ro&er Eincoln Mercury Ferrari Maserati and SpyBer across the "#$% #l Tayer Motors portfolio also includes the sales of commercial &ehicles – D#F% #l Tayer Motors !ith the increase of its operations and di&isions increase in the portfolios follo! a more di&erse organizational structure the di&isional structure% #l Tayer pre&iously follo!ed a functional structure !ith horizontal diNerentiation% #l Tayer !as grouped into functions to increase the eNecti&eness !ith !hich it achie&ed its goals% The de&elopment of functions allo!ed it to manage an increase in specialization and the di&ision of la4or most eLciently% 'ut !ith the products and operations getting more comple5 !ith the introduction of Haguar Eand ro&er Mercury etc% coordination communication measurement of performance and customer pro4lems started to arise and hence #l Tayer had to de&elop into a Di&isional structure%
l (ayer Motor4s Di-isional Structural Design
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Ford Motor Company
#s sho!n in the Organizational Chart Finance functions are separated and created as a separate di&ision acting as a support function for all the di&isions% Separate products i%e% diNerent cars ha&e diNerent di&isions in #l Tayer Motors% #ll the other functions impose sales function on the di&ision as #l Tayer Motors is a dealership for the main manufacturing 1rm and hence focuses on import sales and customer ser&ice of the cars for Ford Motor Company% Ford Haguar and Eand Ro&er Ferrari and Maserati after sales and Finance are the diNerent Di&isions in #l Tayer Motors% Product Structure is follo!ed in #l Tayer Motors rather than a Product Di&isional Structure or a Multidi&isional Structure% # product structure is a di&isional structure in !hich products are grouped into separate di&isions to increase the control% #l Tayer Motors ha&e centralized the support function i%e% Finance at the top of the organization so one set of support functions ser&ices all the product di&isions as the products are similar and aimed at the same marBet% This design decision increases the horizontal diNerentiation !ithin the organization for each di&ision is headed 4y its (eneral Manager and has its o!n hierarchy% The general manager of each di&ision adds a hierarchical le&el or authority increasing the &ertical diNerentiation in the organization% The (eneral Manager coordinates !ith the Finance di&ision to maBe eNecti&e use of their sBills and thus enhance sales of the company%
C0ain o% Command The Chain of Command and the reporting relationships are clearly &isi4le in the organizational chart of #l Tayer Motors% The chain of command clearly sho!s that lines of control of the company !hich are eNecti&e considering the sales function of the organization% The Chain of Command of each di&ision lies in the product di&ision% $mployees assigned to Ford report to their (eneral Manager and indirectly the C$O and Director can 4e reported also% Di&isional managers are responsi4le for the functioning and assignment of responsi4ilities i%e% the o4ligation to perform the duties to the respecti&e di&isional employees%
Span o% Control The span of control determines the num4er of employees each manager can eLciently and eNecti&ely manage% The span of control also determines the num4er of le&els and managers in an organization% The Span of Control in #l Tayer has 4een Bept !ide for a more eLcient !orBing organization entailing
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Ford Motor Company
more managerial le&els% 6ith respect to Ford the (M is follo!ed 4y 'rand Managers and Sho!room Managers of Premier Motors directly% 'rand Managers also control the Sales Managers !ho respecti&ely control the Sho!room managers% The sBills and a4ilities of the managers clearly inuence the span of control in #l Tayer Motors% #l Tayer also maBes use of standardized procedures and information systems to 4etter control the organizational operations to!ards the organizational &ision and mission%
Mec0anistic -s& Organic Organizations #l Taye motors ha&e highly adapti&e and e5i4le structure that permits organization to change !hen the need arises% The product structure can di&ersify into product di&isional structure !ith increased comple5ity of the range of products% #l Tayer Motor7s employees are highly trained and empo!ered to handle the top of the line range of cars of Ford as !ell as diNerent other automaBers% Di&erse jo4 acti&ities and tasBs can 4e assigned to highly trained oLcials as per the re-uirement arises% #nd there is minimal formal rules and little direct super&ision in #l Tayer Motors hence maBing the organizational design a more Organic structure rather than the Mechanistic structure that employs &ice &ersa features%
Summary StaBeholder goals and o4jecti&es can 4e achie&ed only !hen organizational sBills and capa4ilities are controlled through organizational structure% The acti&ities of organizational mem4ers !ould 4e chaotic !ithout a structure that assigns people to roles and directs the acti&ities of people and functions% This report ha&e e5amined ho! Ford Motor Company and its Dealer #l Tayer Motors has deigned its hierarchical control of authority% ,t has the follo!ing main points/ 3% ,ntroduction to Organizational Structure and Design%
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Ford Motor Company
+% ,ntroduction to Ford Motor Company and #l Tayer Motors !hich is a "#$ dealer for the Ford Motors including the Ford 8ision and Mission and :istory of Ford7s entrance in the "#$ marBet% A% Eiterature re&ie! entailing the pre&ious researches and the internet !e4sites re&ie!ed for collection of data% )% Methodology including primary <,nter&ie!s= and secondary <,nternet= sources of data collection% 9% #nalysis of Data and Results o4tained% Detailed Organizational Chart% Organizational Design discussed !ith Organizational Chain of Command Span of Control and Mechanistic &s% Organic structure &ie!%
,e%erences
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MarBeting research 4y the Troy "ni&ersity ,+# group 4ased on the marBeting plan applied 4y the Ford Motor Company% Ford Motor Company !e4site http/KK!!!%ford%com #l Tayer Motors !e4site http/KK!!!%altayermotors%com :ttp/KK!!!%cogmap%comKchartsKfordmotorcompany Management 4y Mary Coulter and Ro44ins Prentice :all Pu4lication +@@+% Organizational Theory Design and Change 4y (areth Hones ;th $dition%
Ford Motor Company
Melanie Da&idson :R Operations Manager #l Tayer Motors tel%/ Q?*3 ) A@A*+@3 fa5/ Q?*3 ) A@A***> email/ m4ailey0altayer%com <'usiness Card attached=
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