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Business organizations have grown into wide-reaching, global and all-inclusive entities today. This has led to the increase in diversity among workers and has opened up several challenges for business organizations while directing a diverse workforce. The consolidation of diverse individuals and their viewpoints has turned into a most critical encounter for each diverse business. If the management fails to manage divergent qualities, it could potentially result in the deficiency of abilities, creativity, aptitudes, skills, competencies and individual interest. All this would eventually lead to higher employee turnover and reduced individuals’ and diverse organization productivity, efficiency, as well as, performance. In contrast, business organizations that effectively oversee the diversity factors are recipients of increased employee commitment and came about to be more fulfilled and achieved along with overall better performance, efficiency and satisfied workers (Fine et.al 306).
Though globalization has encouraged business organizations to embrace global operations and facilitated them to infuse the best talent and expertise from whichever corner of the world, it has also posted various thoughtful challenges, which have ultimately become a global business challenge. Therefore, contemporary organizations are increasingly undertaking strategies and approaches that help them to effectively manage the diversity factors in the global business arena (Ruffino 573). This paper will take the Ford Motor Company as a case to elucidate its approach toward diversity management within its home country along with its cross-border diversity management program. The first title provides the details regarding Ford's organizational background, products and its diversity management strategy in U.S and China. The next section offers comprehensive details about the significant legal and cultural aspects that are vital for the Ford Company to take into consideration while crafting diversity management strategy and related policies. The last section offers a mission statement that relates to the diversity management of Ford in China, as well as, expounding over the foremost challenges and issues related to diversity management.
Ford Motor Company
Ford Motor Company is a U.S based multinational automobile manufacturer that is headquartered in Dearborn, Michigan – United States of America. Henry Ford founded this association in 1903. Ford made its IPO in 1956 and it is still managed by the Ford family over NYSE as they still own the 40% rights of stake voting. The Ford Motor Company also owns automobile brands like Troller, Brazilian manufacturer SUV and Australian manufacturer FPV. The company has also been previously involved in manufacturing automotive and tractor parts, as well as, other automobile components (Ford n.d). Ford Motor Company is not only a conventional organization; it is a rather a giant in the automotive industry that has its fingers in all pokes. For instance, Ford Motor Company has 49% stake in Jiangling China. Likewise, it also got 8% and 2.1% stake in of Aston Martin (United Kingdom) and Mazda (Japan). Furthermore, it has also developed a number of joint ventures and strategic alliances with other automobile manufacturers. Some famous examples of these ventures are Changan Ford Mazda in China, AutoAlliance in Thailand, Ford Lio Ho in Taiwan, Ford Otosan in Turkey and Ford Sollers in Russia. The company has been well-known for introducing large-scale car manufacturing and huge workforce management by using comprehensively engineered sequences of manufacturing, characterized by moving assembly lines. This phenomenon got extremely famous and was recognized as Fordism. The company went closer to getting bankrupt during the financial crises; however, with its brilliant market excellence and management, it resumed being profitable. Ford Motor Company is the 2nd largest automotive manufacturer in the United States and 5th largest across the globe (Ford n.d).
Products & Services
Ford has an extensive range of products and services. Its product portfolio is extended to the manufacturing of automobiles, trucks, buses, tractors, sports cars and automotive components. Whereas, Ford also offers the automotive finance services through one of their subsidiary known as Ford Motor Credit Company. Ford offers an extensive array of automobiles worldwide under the Ford Marque brand and some other luxury versions under the category of Lincoln Marque within U.S. As far as the services are concerned, Ford Motor Credit Company offers financial services such as automobile lease and loans to buyers while also offers credit terms in dealership programs and business loans. It also deals in issuing debt instruments and commercial papers on behalf of its parent company (Ford n.d).
Business Strategy of Ford Motors
The vision statement of the Ford Motor Company states, “People working together as a lean, global enterprise for automotive leadership”. Since 2007, the business strategy of Ford is embodied in its ‘One Ford Plan' that is used by the company as its strategic guide. ‘One Ford’ Plan had three major principle i.e. One Team, One Plan and One Goal. One Ford actually represented the 4-point business plan of the company that is comprised of the following;
Aggressively restricted to enhance profitability with existing demand while altering the model mix.
Accelerating new product development according to the needs and demands of Ford’s valuable customers.
Getting improved financial resources to progress in the balance sheet.
Cooperate adequately and collaboratively as a team (Ford n.d).
On the ground of this 4-point plan, Ford emboldened teamwork, focus and solitary global attitude for aligning the efforts of their hardworking employees towards a shared and defined idea of success. The business strategy of Ford primarily emphasizes over the vitality and significance of collaborative team performance for achieving their desired target of automotive leadership that is being measured by the satisfaction of employees, customers, dealers, suppliers, investors, business partners, councils/unions, as well as, by the community to a larger extent. Ford has also developed a defined set of ethics, codes of conducts and behaviors that are expected to be followed by all Ford stakeholders in order to support and encourage ‘One Ford’ plan (Ford n.d).
The primary goal of the ‘One Ford’ plan is to develop a viable and exciting organization delivering fruitful growth and profitable advancement for all the stakeholders. In order to achieve this, Ford consistently focuses on producing;
A fortified business that is based on a balanced brand portfolio and sustainability.
Pronounced and manifested products i.e. a complete vehicle family comprising of large, medium and small cars, trucks, as well as, other utilities that are finest in quality, safety, fuel efficiency and smart automotive design.
A better, healthier and safer planet through its comprehensive sustainability strategy.
Ford’s business strategy is to have a profitable business growth across several regions of the world and in order to achieve this goal; Ford has implemented its One Ford plan through persistent exercise of business processes at the highest organizational levels for business planning, strategic development, risk assessment, and performance evaluation (Ford n.d).
Ford’s Approach to Diversity Management within U.S.
The business strategy of Ford illuminates the fact that the success of Ford Motor Company is the shared effort and hard work of its internal and external collaborators, as well as, its employees specifically (Fine et al 309). It is the finding of the fact that Ford has attributed the One Ford Plan as its business strategy and organizational culture. One Ford Plan is all about mutual efforts, teamwork, inclusion, openness, commitment, flexibility, and innovation. This is the foremost reason that Ford has always embraced the diverse factors of the workforce. In fact, Ford upholds over 100-years history of encouraging and adapting the diversity component. Therefore, one of the most significant factors of Ford's organizational cultures involves cultural diversity due to increased competition and globalization (Ford n.d).
Henry Ford saw the intelligence of making a diverse work power before the idea was actually embraced by other business organizations pioneers. Even after a century, Ford still keeps on pulling in an exceedingly gifted workforce that reflects inclusion and diversity across ethnicity, culture, perspective, religion, age, sexual orientation, physical abilities, race, and nationality. It is highly focused on the progression of minorities and women in its business operations. All through the historical backdrop of Ford Motor Company, diversity and inclusion have been a significant part of the organization’s prosperity as products are all delivered due to the extreme handwork of their diverse workforce. Diversity at Ford facilitates it towards improving its quality and further strengthens the organization by getting creative and innovative ideas by cultivating a genuinely synergistic working environment (Angouri & Glynos 12).
Ford has been extremely welcoming for the people from the multi-cultural background and recruits strictly on the basis of merit, skills, and talent irrespective of the other differing factors. An evidence to Ford's approach towards diversity is illustrated by the given statistics i.e. according to Ford, in 2013, 22% of their workforce in the United States (both salaried & hourly waged) was comprised of women and 27% was comprised of minorities. Likewise, their total global workforce (salaried) has got 74% men and 26% women. Similarly, 17% of women have been appointed to executive managerial positions by Ford. Furthermore, out of total 16 board members, there are 2 women and 2 minority group members along with 4 women and 8 minority members appointed among 42 corporate executives. In total, Ford has 12% women and 12% minorities in its board of director; whereas, 10% women and 10% minorities as corporate officers (Ford n.d).
Additionally, Ford has developed a defined code of conduct and ethics that involves specific clauses related to diversity to be followed by the entire stakeholders in order to encourage the ‘One Team’ phenomenon of the company. To further encourage diverse organizational culture, Ford has a non-discriminatory hiring policy, aptitude evaluation and diversity management programs. This shows the openness of the organization towards the diversity factors with fair policies towards hiring, employee evaluation, performance management and career development. Due to its inclusive approach towards diversity, it has also won several awards such as the Best Employer Award, World's Most Attractive Employer, Top Diversity Employer and Best Workplace Award etc. This proves Ford’s legitimacy towards welcoming people from every religion, race, sex, nationality and ethnic background.
Diversity & Cultural, Legal & Inclusion Aspects of China Relevant to Ford’s Diversity Management Strategy
Ford has heavily invested in China as a result of its joint venture signed with Changan Ford Mazda. Since the organization upholds similar strategy for its global operations, China is not an exception. Although, Ford aims to operate through its ‘One Ford Plan’ across the globe and it has also incorporated inclusion and diversity thoroughly in its business strategy, yet there are certain factors that it needs to keenly look after while operating outside the border. That is because of the potential multicultural difference that tends to influence its business operations. It is imperative for Ford to consider these differences as each country has different perspectives and orientation towards similar aspects; therefore, it is crucial to understand and manage such differences. If these differences are not managed properly, they might lead to somber consequences related to organizational productivity, profitability, and overall performance.
Cultural diversity is a significant aspect that is required to be considered by Ford while operating in China. Below mentioned are the features of Chinese legislative system along with some aspects of Chinese culture that needs to be comprehensively considered by Ford in order to avoid cultural differences (Angouri & Glynos 12).
Chinese Legislative System
Chinese Legislative system is highly encouraging and supportive for foreign business operators with sound legislation, laws, regulations, and policies; however, it is stringent and complex. As far as legislation related to diversity and discrimination are concerned, they are thorough and inflexible too. The Chinese corporate legislation has well-defined clauses related to Employee Protection, Non-Discriminatory Workplace Practices, Non-Discriminatory Workplace Environment, Workplace Bullying & Harassment, and Fair Employers’ Act etc. Therefore, while operating in China, Ford needs to look after such legislation to avoid any kind of litigations and lawsuits against unfair practices. It is necessary to comprehensively understand and address the legislative requirements of the country for maintaining flawless business operations.
Chinese Aspects of Culture & Diversity
Apart from legislative elements, Ford also needs to look after the cultural aspects such as language, non-verbal communicational factors, norms, rituals, festivals, performance differences, behavioral differences, educational aptitudes, lifestyle differences, attention span difference, and religious and generation differences while staying aware and sensitive to Chinese. In China, language needs to be given special consideration as most of the staff tends to speak their national language only, which may turn out to be a significant challenge for Ford. These are the major aspects that are required to be comprehended by the Ford Motor company before crafting its diversity strategy for managing a diverse workforce in China (Henderson 14).
Diversity Mission Statement & Diversity Challenges
Prospective diversity mission statement for Ford Motor Company could be; “The Ford Motor Company’s mission of global diversity is all about reflecting the rich diversity of the marketplace in which we operate and serve, and want to be recognized for our diversity leadership, fairness and inclusion in all facets of business including marketplace, suppliers, workplace and community while enhancing the social authorization to operate our business”.
Diversity management expects to create and protect a productive and optimistic work environment where the differences of people are acknowledged with the goal that all can achieve their potential and capitalize on their commitments towards the key strategic objectives of the organization (Cox 24). Managing cultural diversity ascertain that the entire workforce has an equal opportunity to make use of their capabilities, enhance their self-development, as well as, their commitment to the organization (Fine et. al 309).
Major Issues for Ford Motor Company
Major challenges that may come across Ford in managing diversity in China may include the differences in performance, aptitudes, behavior, lifestyle, span of attention, religious practices, generation gap and most importantly language. Major diversity challenge is related to communication barriers that tend to result from cross-cultural and cross-language communication. It results in miscommunication that tends to result in the lack of employee involvement, conflicts, erroneous assumptions, lack of productivity, stress among employees, feeling of being discriminated, misunderstanding and poor working conditions. In that case, Ford needs to manage it with cross-cultural training, interpreters and translators (Henderson 15).
Works Cited
Angouri, Jo, and Jason Glynos. Managing cultural difference and struggle in the context of the multinational corporate workplace: Solution or symptom, University of Essex, 2009. Web.
Norma Carr-Ruffino. Managing Diversity: People Skills for a Multicultural Workplace. Pearson Learning Solutions, 2012. Web.
Cox, Taylor. Cultural diversity in organizations: Theory, research and practice. Berrett-Koehler Publishers, 2010. Web.
Fine, Marlene G., Fern L. Johnson, and M. Sallyanne Ryan. Cultural diversity in the workplace. Public Personnel Management, 2009. Web.
Ford. Official Website. 2016. Web.
Henderson, George. Cultural diversity in the workplace: Issues and strategies. Praeger Publishers, 2015. Web.
