Human Resource Management Report: Ford Motors Company Analysis

This report delves into the Human Resource Management (HRM) practices at Ford Motors, examining various aspects of the field. It begins with an introduction to HRM, outlining its objectives and functions within the context of Ford, including workforce planning and PESTLE analysis to evaluate external factors influencing the company. The report then explores recruitment and selection methods, comparing internal and external recruitment strategies and detailing the selection process. It further analyzes the advantages of HRM practices, such as training and development and rewards management, highlighting their benefits for both employees and the company. The report also addresses employee relations, the impact of employment legislation, and the application of HRM practices in a work-related context. Overall, the report provides a comprehensive overview of HRM principles and their practical application within Ford Motors, offering insights into how the company manages its workforce and achieves its objectives.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
L O 1................................................................................................................................................4
P1) Objectives and functions of HRM. .................................................................................4
P2) Methods of recruitment and selection. ............................................................................7
L O 2................................................................................................................................................9
P3) Advantages of practises of HRM. ...................................................................................9
P4) Effectiveness of practises of HRM................................................................................11
L O 3..............................................................................................................................................12
P5) Importance of employee relations in the respect to influence decision-making............12
P6) Key elements of employment legislations and their impact on decision-making.........13
L O 4..............................................................................................................................................14
P7) Application of HRM Practices in a work-related context..............................................14
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Human Resource Management refers to the process of managing the employees of the
organisation. Human Resource Department of the company is responsible for performing all the
functions of Human Resource Management such as recruitment and selection, developing
rewards and compensation system, performance appraisal system etc (Coller, Cordero, G. and
Echavarren, 2018). The Report will be based on Ford Motors Company. The company belongs to
auto-mobile industry. It was founded in year 1903 by Henry Ford. Key products offered by the
firm are Luxury vehicles, Parts of auto-mobiles etc. The headquarter of Ford was located in
Michigan, US. There are various types of services that company provides such as Vehicle
leasing, Automotive financing across the whole world etc.
The Report will outline various functions and objectives of HRM that are related with workforce
planning, strengths and weaknesses of various methods of recruiting and selecting employees.
The Report will also describe various advantages of practises of HRM such as training and
development etc. for employees and company and its role in improving productivity of the
company. The Report will also explain various elements of legislation related with employment,
employee relations that affects decision-making of Human Resource Manager, use of HRM
practises in context of work etc.
MAIN BODY
L O 1
P1) Objectives and functions of HRM.
Human Resource Management -
It is related with the method of hiring the candidates for filling vacant job position,
managing the employees of the firm with the help of various policies and programs. So that, the
objectives of the firm can be achieved in effective manner(DeCenzo, Robbins, S.P. and Verhulst,
2016).
Purpose of HRM- There are various objectives of Human Resource Department of Ford behind
managing the human resource of the company. These are as follows-
 To promote the effectiveness and efficiency in the functions of functional departments of
the firm.

 Another major objective behind HRM is to hire skilled workforce and providing them
adequate training and development opportunities. So that, loyal employees will retain for
long period.
Functions of HRM-
Human Resource Manager of Ford plays an important role in performing various
functions of HRM and these functions are divided in two categories. Such as-
Managerial functions-
Planning-
Human Resource Department of the firm is responsible for conducting workforce planning so
that, right number of employees can be hired for vacant job position.
Directing-
Figure 1 Functions of Human Resource Management
Source : (Functions of Human Resource
Management, 2019)

Human Resource Department of Ford helps in providing direction to the efforts of the
employees. So that, objectives of firm can be achieved.
Operative functions-
Recruitment-
It is one of the important function of Human Resource Department of the company to attract
large number of talented candidates for applying for vacant job position in the firm.
Training and Development-
Human Resource Manager of the firm is responsible for providing training and development
opportunities to existing as well as to new employees (Kew, J. and Stredwick, 2016).
Workforce planning-
It refers to the process of forecasting the demand of employees in the organisation in future as
well as to determine the sources from where the demand can be fulfilled. It also involves
analysing the gap between demand and supply of workforce to ensure that firm will hire right
number of candidates at vacant job position according to their skills.
Human Resource Department will apply PESTLE analysis to evaluate the factors that may
impact workforce planning. These are as follows-
PESTLE-
Political-
Political factors plays an important role in workforce planning by Human Resource Department
of Ford. Rules and regulations of Government of UK in respect of employment will affect human
resource practises of the company. The view of Government towards foreign investment will
impact the decision of Human Resource Department of Ford in respect of forecasting the
requirement of employees as a part of workforce planning.
Brexit has also create an impact on decision making of HR department of Ford. Due to Brexit,
HR Manger of the company have to attract and retain the talented employees, it will also impact
the management of workforce in the firm (Wilton, 2016) . Brexit has impact the decision making
related with HR, Labour market will support the movement of skilled and unskilled employees
between different countries and it will provide Ford the access to talented workers from other
countries also.
Economic-

There are various economic factors that may impact workforce planning by HR department of
Ford. These factors includes rate of tax, level of economic growth, disposable income of
customers. For example- The availability of funding in the country will affect investment
decisions as a result it will also affect the workforce planning regarding the number of
employees required.
Social-
There are various social and cultural factors that can impact the decision making of HR
department of Ford in respect of number of employees required for performing different roles
etc. Demand of customers in respect of auto mobiles will impact the process of production and
distribution(Cascio, 2015). Therefore, company will have to recruit talented workers to fulfil the
demands of buyers.
Technological-
Auto-mobile industry in UK is experiencing various changes in respect of production and
distribution of vehicles for the customers, rate of changes in the technology etc. Human Resource
Department should consider technological factors while forecasting the demand of workforce in
the company. It is necessary that, HR department should recruit the employees that are aware of
advance technology(Gilbert, De Winne, S. and Sels, 2015).
Legal-
It include factors like conducting business in ethical manner, there are various laws related with
workers such as law related with safety etc. HR department of Ford should consider the impact
of these laws during workforce planning.
Environmental-
Company should consider environmental factors while performing workforce planning such as
how the workers will work safely in case of extreme weather etc.
P2) Methods of recruitment and selection.
Recruitment-
It is one of the important function of Human Resource Department of the company. It
includes attracting the right number of employees so that, they will apply for vacant job position
in the firm. HR department of Ford will use different methods of recruiting employees(Brewster,
Chung, C. and Sparrow, 2016). Such as-

Internal recruitment- It refers to the process of appointing the current employees of the firm on
vacant job position.
Strengths-
 It is an easy process of recruiting employees within the organisation.
Weaknesses-
 It provides a limited choice to HR department for selecting the employees.
External recruitment- It refers to the process of attracting the employees from outside the
organisation that are not currently working in the firm.
Strengths-
 It provides a large pool of candidates. Therefore, chances of selecting right employees are
more.
Weaknesses-
 It is a costly and time consuming method.
Recruitment process model-
It refers to a various steps that are followed by HR department of the firm for finding right
number of employees for the right job. Various steps that will be followed by HR department of
Ford are as follows-
Identify need of recruitment by identifying the number of vacant job positions in the firm.
Preparing job description, person specification etc.
Identify the sources of recruiting employees.
Choose the method of recruitment.
Now, conduct screening of the applications.
Conduct interview process.
Evaluation of the process.
Selection-
It is a process of selecting the candidates that are having suitable skills and knowledge for the
vacant job position. HR department of Ford will use various methods of selecting the right type
of candidates.
Selection Test-
HR manager will conduct various types of test such as aptitude test, personality test for
appointing the right type of employees for the right type of job.

Interview-
Company will conduct different types of interviews such as one to one interview, interview by a
panel etc. for selecting the candidates.
Strengths-
Effective process because, it helps to determine the abilities, proficiency of candidates(Bratton, J.
and Gold, 2017).
Weaknesses-
It rarely provides the true picture because, it is possible that .
Selection process model-
HR department of Ford will follow various steps for selecting right type of employees.
Conducting preliminary interview.
Accepting the applications that will include information like work experience etc.
Screening committee of the firm will screen the applications.
Conducting employment test of candidates.
Conducting the interview to determine skills of candidates.
Checking the references.
Performing the medical examination.
Finally hiring the candidates and providing appointment letter.
L O 2
P3) Advantages of practises of HRM.
Heading Benefits to employees Benefits to Ford Co.
Training and development-
Training is the process that
helps to improve the skills and
knowledge of employees.
Training is provided to the
employees for a short period of
time.
Development refers to the
Training and development
function of HR department of
Ford helps to provide various
advantages to the employees
such as-
It helps to improve the existing
skills and knowledge of the
Training and Development of
the employees of Ford will
help to reduce the wastage of
the resources of the company.
Training of employees helps to
improve the performance of
employees. As a result, the

process related with the overall
development of the employees.
Overall development of
workers requires a long period
of time.
Training is needed for
improving the level of
performance of the workers. It
helps to fill the gap between
actual and standard
performance of the staff.
employees. performance of Ford will also
improve and helps to increase
the level of sales and
profitability of the company.
Rewards management-
It refers to the process of
developing and implementing
various strategies for providing
the rewards to the employees
in equal manner. There are two
types of rewards-
Extrinsic- It fulfils basic
needs like survival.
Intrinsic- It helps to satisfy
esteem needs, higher level
needs of employees.
Company can provide rewards
such as bonus, incentives,
perks by developing and
implementing recognition
programme for the employees.
For example : Ford
organization provides the
Extrinsic and Intrinsic rewards
Providing rewards like bonus,
perks and incentives etc. will
help to improve the job
satisfaction level of employees
that are working in Ford.
It will help to improve
motivation level of the staff.
Retirement plans of the firm
will help to improve the level
of productivity of the workers.
Total reward management
system provides incentives to
workers that will help to retain
loyal employees in Ford.
System of providing rewards
to the workers will help to
improve the employee
engagement in the firm.
Rewards management system
will help to motivate the staff
of Ford to perform better and
they will contribute more
efforts for achieving the goals
and objectives of the company.

and management that control
the effective management task.
That helps to motivate
employee development.
Performance management-
Performance management
system is an important
function of HR department of
the firms. It helps to
communicate the goal of
organisation to employees. It
reflects the performance of
individual workers and helps
the manager to evaluate
individual performance(Bose,
I. and Biswas, 2018).
For example : Ford motivates
employees system and conduct
the practices of performance
management like weekly
review, appreciation ceremony
etc.
It provides support to workers
in respect of development of
their career.
It will provide opportunity of
promotion to the employees.
Also helps to improve the level
of productivity of the workers
that are working in Ford.
Performance management
system of Ford will help in
self-development of the
employees working in the
firm.
Performance management
system which is implemented
by Human Resource
Department of Ford will help
to improve employee
engagement in the company.
The system will also help Ford
to evaluate the need of training
and development of the
workers. It helps the
management of Ford to
coaching to the employees
during the time of their
performance.
Performance management
system of the company helps
to manage the resources of the
firm that ultimately leads to
the success of the organisation.

P4) Effectiveness of practises of HRM.
It is analysed that Ford uses various HRM practices with the main aim of motivating and
encouraging their employees. It uses training and development, performance management and
reward management. All these practices help them in increasing performance level of employees.
Effectiveness of all practices can be defined by the measurement of performance and growth
level of employees of Ford company.
Training and development: There are some effectiveness of training and development
programmes which are being developed and organised by Ford company for their employees.
Training programmes allow employees to improve their knowledge and skills by which they can
perform better. When employees lay keen emphasises on their work then it leads to improve their
productivity (Paauwe and Boon, 2018). They focus on providing the better quality products and
services by using their skills and knowledge. Qualitative products and services satisfy customers
needs which directly impacts on the sales and profitability of Ford car company. It increases their
sales and improve their brand image in the eyes of consumers. For Example : Ford has adopt
different kinds of trainin session such as Brainstorming, Case study online etc.
Reward management: It is other main and important practise which is being used by
Ford car company for motivating their employees. Reward system keep employees motivated
and happy. Employees feel that employers give attention to their problems and try to solving
their all types of problems. Employer of Ford car company provide financial and non financial
rewards to their employee. They praise and recognise them when employees perform better. It
motivates other employees to work more productively and effectively. It increase their
productivity as well as sales of the company (Farouk and et.al., 2016). For example : Ford offer
holiday packages for the employees who work in an excellent manner. Besides, it generates the
high performing task to generate the employee development.
Performance management: Effective performance management also play a vital role as
it boosts productivity and engagement. Continuous performance management help the company
in developing a relationship with employees as the main aim of Ford car company of
performance management is to align their team and enhance employees performance. With the
help of performance management, employer ensure that all the employees understand the
importance of their efforts and contribution in their determined goals and objectives. It also helps
them in satisfying their employees needs because employers of the company provide transparent

and open feedbacks to their employees and tell them about those areas which requires to be
improved (Shields and et.al., 2015). By taking feedbacks employees more focus on their work
which increases overall productivity and profitability of the company.
L O 3
P5) Importance of employee relations in the respect to influence decision-making
Employee relationship with employers and other employees plan an important role for an
organisational growth. There is an importance of maintaining and developing a strong
relationship with others at workplace because employees spent their lot of time at workplace.
They need people to take help, to talk and to share their views. If employees feel that there is
someone who can solve their problems and listen their opinion then they feel happy. It is
analysed that happy and motivated employees lay keen emphasises on their work with more
effectively. It is beneficial not only for employees but also for employers of an organisations
(Ross, 2015). The main aim of Ford car company to more focus on improving relationship with
employees is to make the best decisions regarding all the process and perform ace. Importance of
employees relationship are as follows:
Work becomes easy: The main important advantage and importance of developing
relationship is it makes the work easy. With the help of strong relationship, employees can ease
the work load of each other by helping them in their work which increases productivity of the
company and employees as well. On the other hand if employees do not have healthy and strong
relationship then they will not be eager to assist them in their given assignment.
Reduces absenteeism: Strong relationship with employees make them happy and
motivated towards their work. Motivated employees take their work seriously and they feel like
coming to office daily (Ross, 2015). It decreases absenteeism and labour turnover within an
organisation. Ford company invest more on developing relationship and it helps them in
increasing their brand image.
Discourage conflicts: Strong employees relationship also discourage conflicts as
employees tend to adjust and do not find the faults in each other. If they feel that they have a
good relationship with other then they do not waste their time on meaningless conflicts and the
reasons which can create disputes among them, They try to solve conflicts on their own. They
only concentrate on their work which can help them in their career development.