ORGANIZATIONAL CULTURE

PresentationBy

M.B.JAHAGIRDAR

FORD MOTORS

Henry Ford

FORD MOTORS

Ford motors began with a young man Henry Ford in year 1903.Ford motors is a symbol of success for other motor companies in the world.Ford owns a small stake in Mazda in Japan and Aston Martin in UK and its former subsidiaries Jaguar and Land rover were sold to Tata motors.

What is Organizational Culture?

• A system of meaning shared by the organization’s members

• Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

Culture’s Overall Function

Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do.

Elements of Organizational Culture

Visible

• Unconscious, taken-for-granted perceptions or beliefs

• Mental models of ideals

Shared assumptions

• Conscious beliefs• Evaluate what is good or bad, right or

wrong

Shared values

ArtifactsArtifacts

• Stories/legends• Rituals/ceremonies• Organizational language• Physical structures/décor

• Stories/legends• Rituals/ceremonies• Organizational language• Physical structures/décor

Invisible(below the surface)

Climate Influences

Motivation Performance Satisfaction

Climate

• Climate, on the other hand, refers to the

psychological environment as reflected in attitudes and perceptions.

Elements of Climate• Quality of Leadership• Amount of Trust• Communication, upward and downward• Feeling of useful work• Responsibility• Fair rewards• Reasonable job pressure• Opportunity• Reasonable controls, structure, and bureaucracy• Employee involvement, participation.

CULTURE INFLUENCES PERCEPTION

• "In a world as complex as ours, each of us is shaped by many factors.culture is one of the powerful forces that acts on us.”

• for example : When you shape a round finger, it means ‘zero’ in Indonesia but in Brazil that is rude.

MISSION

Following is the mission statement of ford:

• To become a leader in motor vehicles for products and related services.

• We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.

• We anticipate consumer need and deliver outstanding products and services that improve people's lives.

VISION

Following is the vision statement of Ford:

• To become the world's leading consumer company for automotive products and services.

• An exciting viable FORD delivering profitable growth for all.

CULTURE – (broader perspective)

FORD MOTORS

• FMC employees of today enjoy a workplace with a more open communication policy than their predecessors that might affect them .

• Employee opinion is valued and is heard through surveys the company sends out .

FORD’S CEO LEADS CULTURAL CHANGE

• CEO of ford is working hard to change work habits of employees.

• Wants managers to think more about customers than their own careers.

• Top priority is to encourage leadership team to admit mistakes, share more information and cooperate across divisions.

FORD MOTORS ACCOMPLISHMENTS

• Ford’s use of Assembly lines was a revolutionary method.

• Use of light weight, durable, easily machined, stronger metal like Vanadium.

• Introduced left hand drive configuration.

Value of ethics

• Principles, values, and beliefs that define what is right and wrong behavior

FORD’S CODE OF BUSINESS ETHICS

CONFLICT OF INTEREST

• Relationship of company with third parties.

• Compensation from non company sources.

• Gifts

• Personal use of company assets.

GUIDELINES

• Compliance with laws, rules and regulations; fair dealing.

• Encouraging the reporting of any illegal or unethical behaviour.

• Compliance procedures.

• Stringent action against unethical acts.

FORD’S PERSPECTIVE

• Customer satisfaction is their primary objective.• Keep innovating and serve the customer with best quality in

least price.• Aims at making “Life easy” for their customers by providing

them what they need.

“BUILT FORD TOUGH” “BUILT FOR THE ROAD AHEAD”

PERFORMANCE APPRAISAL

• Formal system of review and evaluation of individual or team task performance.

• The aim of performance appraisal is to determine the gap between the actual performance of the employee and that required or desired by the organization.

Ford’s system of appraisal

• Annual system of appraisal.• Employees are given ratings on the basis of

there performance as A ,B,C.• One year at the C level meant no bonus and

two years could lead to dismissal or demotion.• Forced system is followed.5%of managers

should must get poor grades.

CORPORATESOCIAL RESPONSIBILTY

CSR(FORD MOTORS)• Ford establishes Greenhouse Gas Reduction Plan.

• Automotive Industry Action Group (AIAG)

• Participation in the fight for ‘labor’ rights of workers across the world.• Ford will not tolerate any of their suppliers abusing workers, no matter

the country.• Ford is leading the automotive movement for less dependence on

foreign resources.• Ford is the only automaker among the top 25 of the 50 companies

demonstrating best practices in corporate social responsibility.• Ford also was the first in the automotive industry to develop, implement

and report a Code of Basic Working Conditions

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