Human Resource Management Practices at Ford Motor Company

The provided document is a report on Human Resource Management (HRM) practices adopted by Ford Motor Company. It discusses the organization's approach to HRM, including recruiting, selecting, training, and developing employees, as well as motivating them and managing their performance. The report also assesses the effectiveness of Ford's employee relations and engagement strategies, highlighting the adoption of flexible organizational structures and work practices, making it an employer of choice.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. A) Purpose and functions of HRM for workforce planning and resourcing in Ford............1
P2. B) Strengths and weaknesses of different approaches to recruitment and selection.............2
TASK 2............................................................................................................................................3
P3. Benefits of different HRM practices within Ford for both employer and employee............3
P4. Effectiveness of HRM practices in raising organizational profit and productivity...............4
P5. Importance of employee relations influencing HRM decision making.................................5
P6. Key elements of employment legislation and impact on HRM decision making.................7
TASK 3............................................................................................................................................7
P7. Application of HRM practices in a work related context......................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

LIST OF FIGURES
Figure 1: Human Resources Management.......................................................................................2

INTRODUCTION
Human Resource Management is the formal system of strategic planning approach to
effective management of organizing workers, recruiting, hiring and deploying employees to gain
competitive advantage of business. Report on HRM will analyze the purpose and functions of
human resource management for workforce planning and resourcing for which a case study on
HR practices of Ford Motor Company is undertaken. The study will analyze strengths and
weaknesses of various approaches of recruitment and selection of human resource in Ford.
Elements of employment legislation, significance of employee relations and impact on HRM
decision making is also explained in the case study.
TASK 1
P1. A) Purpose and functions of HRM for workforce planning and resourcing in Ford
Ford Motor Company is the American multinational automotive manufacturer founded in
1903 by Henry Ford ad is headquartered in Dearborn, Michigan. It has a large scale
manufacturing of automobiles and manages an industrial workforce with manufacturing
engineering sequences and assembly lines which the organization refer to as ‘Fordism’
(Employees Management Analysis at Ford Motor Company, 2014). Employees are the driving
force behind success of Ford.
Purpose of HRM in Ford
Human resources are the most important asset of Ford which helps in achieving
organizational objectives and goals and converts innovative ideas into actions (Guest, 2011). The
main mission of HRM is to coordinate people within the organization to achieve organizational
changes and productivity by concentrating on internal sources and adapting culture and structure
of Ford.
 Engage employees: HR ensures that employees of Ford are working at their best and
performing roles and responsibilities assigned to them in an effective manner. HR also
engages workforce in several activities and events to ease out work pressure and increase
motivation and cooperation among them.
 Abide government policies and laws: HRM complies procedures and policies and makes
the organization and employees follow those duties and obligations depending on the
type, nature of government, restrictions and legislations in various nations.
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Internal customer management: HRM performs and implements several policies and processes
to attract, recruit and retain workforce of Ford and has a direct relationship with the finance
department of the organization (Bratton and Gold, 2017).
 Effective utilization of resources: Right utilization of resources including machinery,
land, raw material, personnel etc without wastage is ensured by the HR department of
Ford. Maximum use of resources helps in effective production and operations of
organization.
Figure 1: Human Resources Management
(Source: Human Resources, 2018)
Functions of HRM in Ford
 Recruit, hire and deploy personnel in Ford to meet the organizational objectives and
goals of the organization.
 Performs managerial responsibilities like planning involving forecasting and developing
strategies, organizing established objectives and plans, directing employees and
workforce by encouraging and motivating.
Providing training and development of employees to upgrade their knowledge, evaluate
performances and increase potential by improving skills and abilities (Briscoe, Tarique and
Schuler, 2012).
 Ensuring good working conditions, maintain efficiency and assuring welfare and well-
being of employees.
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Ford while preparing optimum recruitment and selection focuses on short and long term
objectives. To plan an effective workforce for achieving organizational goals and objectives like
strategic or business growth, future projects, increased sale volume etc. Ford requires efficient
recruitment and selection of employees who can contribute potentially to achieve goals and
objectives of organization (Chelladurai and Kerwin, 2017).
P2. B) Strengths and weaknesses of different approaches to recruitment and selection
For recruiting talented candidates and potential staff in Ford requires effective scrutiny
and analyzing of candidates who can render potential contribution to organization. Ford follows
effective recruiting and selection process using and applying various approaches that have their
own strengths and weaknesses are as follows:
Online recruiting: Ford uses the advance technologies and techniques due to increased
use of internet and availability of job boards. This helps organization to post job vacancies on
online job portals and agency sites and even in their website to attract and recruit right candidate
from the masses. This method helps in quick sorting of potential applications that are worth
considerable for interview. The major disadvantage of this approach is that it is costly process
and at times right candidates might get rejected due to refining and sorting done looking for
experienced personnel’s.
Internal recruiting: It is the method followed by Ford that renders a promotion and
transfer of present employees by circulating job advertisements to them and analyzing personal
records to identify potential skills, performance and experience. It helps Ford to increase
motivation and give opportunities to deserving staff which will rise productivity and
performance of organizational activities (Wright and McMahan, 2011). The main disadvantage
of this approach is that it creates political, ego conflicts among employees which might cause a
hindrance to Ford’s managerial operations.
External recruitment approach: Ford focuses on recruiting fresh, experienced and
innovative candidates by marketing, job advertisements in mass media, conducting presentations
in universities etc. The advantage of this method is that new and fresh innovative candidates can
be recruited to benefit organization in its working and growth. The weakness of this method is
that due to absence of knowledge about past performance, true quality and morale of candidate
cannot be determined by Ford.
For selecting employees shortlisted for interview Ford uses following steps;
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Conducting online application which includes reviewing of personal information, educational
and professional qualifications, work experience and skills and abilities of applicant (Alfes and
et.al., 2013). After reviewing details or information provided the firm conducts an online test to
understand numerical and inductive reasoning of an applicant.
Advantages and disadvantage of interview of selection method
Interviews are the major selection method adopted by Ford Motor Company’s HRM to
effectively recruit talented and innovative workforce for the organization’s growth potential
needs. It has various advantages and disadvantages which are:
Advantage of interview of selection method Disadvantages of interview of selection
method
 It is helpful in determining
applicant’s communicative and social
skills which is necessary for
interactions and communication
between customers, employees and
management.
 Helps in selecting suitable and apt
candidate for the specific job role and
helps in collection of primary and
required information
 Less costly, increases knowledge of
both interviewer and applicant and
are flexible and feasible.
 Renders chance for interviewee to ask
questions and queries which will
assist in revealing more information
to make decisions.
 Evaluations can only be made on the
basis of subjective matters
 It is a time consuming process and
involves expenses that are high
 Interview processes are more prone to
biases of interviewer that might
influence the whole interview process
 Inexperience and inefficiency of
interviewer may lead to selection of
unsuitable candidate
 These are not reliable as tests,
negative information can be rendered
by applicant that are not true and not
much evidence of valid selection
procedure.
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TASK 2
P3. Benefits of different HRM practices within Ford for both employer and employee
HRM practices in Ford benefits the organization to achieve competitive advantage with
different capabilities and behaviors of firm to execute strategies successfully and by aligning
business plans to HR policies and frameworks. HRM practices helps in bringing innovation to
the organization by bringing employee and employer together. It helps in conflict resolutions and
mediate disputes between employees and management by interpreting policies and procedures of
Ford. HRM practices resolves matters like poor attitude, disrespectful behaviors and
insubordination in Ford. These practices assist workers with training and development which is
another responsibility of Human Resource department of the organization. HRM organizes
training programs and determines appropriate delivery of these plans based on employee’s
requirements. These training programs benefits employees and management by attaining
personal growth, improve skills and knowledge which will benefit in increasing high
performance work by staff that will induce higher productivity in Ford.
Flexible job definitions, cross trainings, teamwork’s, incentive and other schemes will
improve performance of employee at the same time making them satisfied and dedicated towards
Ford. HRM practices integrated with business strategy renders higher organizational
performance, increased productivity and growth of Ford through fair employee behaviors and
attitudes. HRM practice helps Ford in bringing together its organization culture involving values,
vision, mission, objectives, traditions and working system adopted by firm (Lengnick-Hall, Beck
and Lengnick-Hall, 2011). It provides various health and safety benefits to employees in Ford to
avoid risks and accidents which might cause injuries and danger. HRM practices helps
employees experience peace of mind leading to increased productivity and satisfaction makes
them more creative, innovative and responsive towards their work and organization. Personal
benefits like insurance, PF, health benefits etc rendered by HRM practices of Ford makes
employees enjoy additional protection of income replacement in illness or injury.
HRM practices in Ford are directly or indirectly linked to several outcomes related to
financial, organizational and human resources that renders increased client and stakeholder
satisfaction. It helps employees well informed with the systems and practices which Ford are
following and are about to implement (Chuang and Liao, 2010). Maintaining a transparent and
participative management style by HRM will render employee’s involvement in decision making
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process that paves way for sharing of innovative ideas and suggestions of staff that may benefit
Ford in its organizational structuring and operations.
P4. Effectiveness of HRM practices in raising organizational profit and productivity
HRM practices of Ford helps in advancing organizational effectiveness and performance
by attracting, identifying and employing staff with proper knowledge, skills and abilities by
acquiring them to behave in a manner which is fruitful for Firm and supports mission and aims
of company. Raised productivity and profits are the results of improved organizational
performance rendered through employee elasticity and wide range of strategic HRM policies and
obligations.
Approaches to workforce planning, recruitment, selection, training and development,
performance management and reward systems
Innovative workforce planning ensures Ford achieve its strategic vision through potential
employees having right skills and attitudes that are linked to proper structure and delegation of
authority and responsibility. Strategic workforce planning by HRM of Ford renders it with
advantages like; helping leaders understand the need of workforce to obtain and execute business
strategies regarding growth and productivity. It also helps HR leaders in shaping, organizing and
deploying resources and employees to deliver Ford with their targeted objectives strategically.
Ford focuses on analytical approach to workforce planning which renders fact based
method to understand behaviors of employees which includes reviewing employee recruitment,
promotion and turnover patterns and reveals hidden causes of overtime, low productivity and
absenteeism in organization (Bloom and Van Reenen, 2011). It is classified on basis of Ford’s
long, medium and short term plans involving budget, finance and investment plans. A strategic
workforce planning is followed by Ford as the firm is planning to change its operating model
which consists of talent management by analyzing skills and competencies available in the
organization. HRM ensures continuous supply of right people with skills and abilities for the
new workforce model.
Systematic approach of recruitment and selection of Ford will assist them in hiring right
candidates by identifying abilities and skills needed to meet the requirements of business. This
systematic approach will help Ford to provide training and development to employees who are
lacking certain skills and capabilities to ensure and prepare them to work effectively for firm.
Ford conducts a comparative approach to measure performance of employees by ranking them
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on the basis of highest to lowest performer in the particular department of firm (Kehoe and
Wright, 2013). It uses paired comparison technique to compare employees and rank them using
categorization rules where the scale is based on subjective judgements. To bring workforce
improvement, support and gain commitment of people Ford follows several rewarding systems
to employees. By keeping justice and impartial behavior Ford is planning to reward its
employees with incentives, bonuses, overtime pay, health and other allowances based on the
value and performance of staff. Equity theory followed by Ford helps people or employees attain
proper rewards with relation to others in organization which ensures equal pay for work.
P5. Importance of employee relations influencing HRM decision making
Maintaining a healthy employee relation in Ford is a major element of organization’s
success and growth. Strong employee relations with management and employers renders higher
productivity and satisfaction which generally involves avoiding and resolving conflicts and
issues that may arise in workplace causing a hindrance to operations and productivity of Ford.
Some of the importance of employee relations that influences HRM decision making are:
 Open channel of communication and delegation of duties and responsibilities by HRM
becomes easy with effective network of employees in Ford which is united and
cooperative (Kusluvan and et.al., 2010). Employee relations supports shared
understanding and clarity of decision making which are based on trust and mutual
respect.
 Effective, positive and cooperative employee relations will assist managers and leaders in
rendering clear managing processes relating to grievances, discipline etc.
Ford follows a collaborative approach of employee relations and engagement to ensure employee
satisfaction and value organization. It also engages employees as individuals and foster
leadership development as Ford is changing its operating model in the diverse environment.
Employee engagement is the combination of commitment to Ford and its organizational values
and willingness to assist coworkers. HRM practices of Ford needs to work with all areas of
organization effectively to foster employee relations and engagement and motivation among
staff. The approach is based on empowering employees to make decisions and shape their duties,
treat all staff fairly and support their wellbeing (Guest, 2011). Communications keep employees
informed about the policies and procedures that are implemented by the organization to attain
strategic objectives and goals.
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To achieve good employee relations and engagement Ford needs to follow the practice of
flexible organization, work practice and employer of choice. Flexible organization structure
followed by Ford to cope up with organizational structuring is where workers adapting to needs
of customer efficiently completing work and encourages decision making. This quick adaptation
to external environment changes with an aim to attain competency and sustainability Ford
follows a geographical organizational structure. To cope up with the flexibility firm need to
implement this structure with decentralization as demands and needs of customers in the present
market are changing rapidly. Along with this a flexible work practice is adopted by Ford to meet
working the needs of employees that increases feeling of personal control over schedule and
environment of work. It renders employees to maintain a balance over work life and schedule
work according to the availability to accomplish more results. Ford also follows an employer of
choice system to attract and retain superior employees who can render maximum benefit to the
productivity and profitability of organization. It offers an employee benefit package including
health benefits, paid holidays, vacation etc. This system or benefits will contribute to job
security, empowerment and authority, growth opportunity, involvement and commitment
(Bratton and Gold, 2017).
P6. Key elements of employment legislation and impact on HRM decision making
Employment protection legislation involves all employment safeguarding measures like
labor laws, customary practice, collective bargaining conditions etc. It is the law that governs
employment of an individual in an organization which affects the employer, employee and
organization. HRM practices of Ford involves rights and activities protection by employment
laws that deals with employee rights, legal responsibilities of employers or organization. Some
of the major laws that affect HRM practices in Ford are; equal employment opportunities,
discrimination, labor laws and employee criminal records. Main elements of employment
legislations which Ford must follow to avoid legal obligations and allegations are as follows;
Nondiscrimination and equal opportunity: Employees of Ford are protected from discriminations
on basis of race, sex, religion and age that are compiled under the employment law. The age
discrimination in employment act, equal pay act are laws that prohibits employment
discrimination and safeguards equal opportunity (Briscoe, Tarique and Schuler, 2012).
 Equal pay act 1963 renders employees with equal pay for their work without
discriminating workers on basis of wages paid considering gender or responsibility level.
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 Occupational health and safety act 1970 are laws that protect safety of employees at work
place. HRM of Ford is required to follow and implement this law and document
hazardous materials used, render proper training to employees on dangerous jobs etc to
safeguard health and wellbeing of staff.
TASK 3
P7. Application of HRM practices in a work related context
JOB DESCRIPTION FOR SALES EXECUTIVE
JOB TITLE: SALES EXECUTIVE / ASSISTANT
DEPARTMENT: SALES AND MARKETING
SALES MARKETING DEPARTMENT OBJECTIVES:
 Build good working and potential relationships with customers and stakeholders
 Understand needs of customers
 Research market, competitors, economy and products and services
 Listen to client’s requirements and assist
JOB PURPOSE:
 Negotiate on price, cost, delivery and specifications with buyers and managers
 Communicate with suppliers and check progress of orders
 Review sales performance and meet targets
 Meet organization’s sales and marketing goals or objectives
REPORTING TO: SALES MAANAGER
RESPONSIBLE FOR: SALES AND MARKETING ACTIVITIES
APPROVED BY: GENERAL MANAGER
DATE: 26.10.2018
PERSON SPECIFICATION FOR SALES EXECUTIVE / ASSISTANT
EDUCATIONAL QUALIFICATIONS
ESSENTIAL:
 Bachelor degree in commerce or management field
 Post-graduation in Management, business or marketing
DESIRABLE:
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 Bachelor degree in any stream
 Business, management and marketing knowledge
WORK EXPERIENCE REQUIRED
ESSENTIAL: Minimum 1 year sales, marketing, merchandising or retail operations
DESIRABLE: 6 moths experience in customer relations and management
PERSONAL SKILLS AND BEHAVIOUR QUALITIES
ESSENTIAL:
 Well versed with MS-excel, word, power point and outlook
 Communication skills including English as a must
 Self-motivated, dedicated and willingness to travel
DESIRABLE:
 Basic computer knowledge
 Ability or desire to sell
 Capable to adapt with competitive environment
JOB OFFER LETTER FOR SALES EXECUTIVE / ASSISTANT
Dear Mr. /Mrs. (name of the candidate)
Congratulations from Ford Motor Company! You have been selected for the Sales Executive /
ASSISTANT role in Marketing and Sales Department of as the permanent full time employee
of Ford Motor Company. On behalf of the organization we are pleased to offer you to be a part
of Ford’s innovative and talented sales team. This formal job offer letter to you is to join Ford
Motor Company, in this role the normal working hours of yours will be 8 hours per day. The
remuneration or salary will be £2600 per month and you will be eligible for availing other
benefits like PF, incentives, bonuses, health insurance, travel allowances etc. offered by Ford
to its employees. We anxiously hope that you will join Ford Motor Company immediately
after receiving this letter and we look forward for your contribution for the organization. For
any queries and information you may please feel free to contact us on email;
[e-mail], phone; 0208023230606.
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CONCLUSION
Human resource is the valuable asset of an organization and is the main factor of success
for Ford Motor Company. Report on HRM discussed the practices of Human resources
department of Ford and its applications in various processes like recruiting, selection, training
and development, employee motivation and performance management. Effectiveness of Ford’s
approach to employee relations and engagement and adoption of flexible organization, work
practice and employer of choice is assessed to develop strategies for organization’s new
operating model.
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REFERENCES
Books and journals
Alfes and et.al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity.
In Handbook of labor economics (Vol. 4, pp. 1697-1767). Elsevier.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Chuang, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service context:
Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-391.
Kusluvan and et.al., 2010. The human dimension: A review of human resources management
issues in the tourism and hospitality industry. Cornell Hospitality Quarterly. 51(2).
pp.171-214.
Lengnick-Hall, C.A., Beck, T.E. and Lengnick-Hall, M.L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
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