Bus 530 Organizational Behavior-Ford Motor Company

1. Discuss the role of leadership and how it can impact organizational performance. Employees can either be more productive therefore making the company more successful and leadership roles are important within a company can impact organizational performance positively or negative. There are many roles a leader can take to have a productive successful company. Effective leaders set goals, open communication with subordinates, have trust, agenda that lead to meaningful effective meetings. The role of a leader is to influence the behavior actions of its subordinate in order to carry out the measureable goals of the organization.

Most leadership styles fall into four models. The style of the model reflects the role that the leader perceives him to have in order to obtain a successful business. Theory X beliefs embrace the following negative views of human nature. People are inherently lazy and must therefore be motivated by incentives. People’s natural goals run counter to those of the organization; hence, individuals must be controlled by formal rules and management to ensure that they’re working toward organizational goals. Because of irrational feelings, people are basically incapable of self-discipline and self-control.

The average person prefers to be directed, wishes to avoid responsibility, and wants security above all. Based on the above premises Theory X model leader role is therefore to direct, control, and modify their subordinates. Theory Y model is based on a set of beliefs that managers should take an empowering approach to management. Theory Y is based on a set of beliefs that managers should take an empowering approach to management. The average human does not inherently dislike work. Depending on controllable conditions, work may be a source of satisfaction.

Rules, top-down managerial control, and the threat of punishment are not the only means for achieving organizational goals. Employees will exercise self-direction and control in the service of goals to which they are committed. The average person learns, under proper conditions, not only to accept but to seek responsibility. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution to organizational problems is widely, not narrowly, distributed in the population.

Based on the above model trait leader role in Theory Y, the leader is there to motivate and direct the motivation of the employees toward organizational goals. Theory Y leaders rely more on the self-control and self-direction of their subordinates. Theory X allows for more individual accountability through micromanagement and workplace techniques while Model Y utilizes more self-monitoring techniques. Leaders don’t necessarily stick to model but they can exercise both models. There are other models that can come into play with leaders such as the Situational Leadership and the V-Room Leadership.

2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. On the verge of financial collapse, Alan Mulally was hired as CEO of Ford Motor Company in 2006. His initial leadership style embodied Model Theory X traits. As he gained headway and pulled FORD towards financial independence, hints of Model Y traits were incorporated. Armed with Model X strategies Alan devised a plan that identified specific goals for the organization.

He devised a process that moved it towards those goals and implemented a management system to ensure the company obtained those goals. His approach he felt was mandatory since the leadership prior to his arrival led to catastrophic financial loss of over 12. 6 billion in 2006 another 2. 7 billion in 2007 in an evitable recession of 2008-2009. His effective leadership style led to major stream lining of the Ford product to accelerate development of new products and create a global enterprise for automotive leadership.

As the company faced financial collapse and avoided taking on government loans, Mulally exhibited hints of Model Y traits as outlined in his “expected behaviors” for the company which include his belief for skilled and motivated people have a continuous improvement philosophy through respect and appreciation of everyone in the Ford company Overall Alan’s leadership style focuses on the Ford brand to confirm its successes by 2013. 3. Discuss how goal setting helped Ford improve its performance.

Mulally’s success was attained by communicating concise, measurable and viable goals to his tea. His single goal was to reestablish Ford as a viable American Icon. To achieve this main goal he established some sub goals. Such as reducing products to 40, selling off other companies, remaining independent by not taking on government money, being best in class products, and having good work ethics. 4. Assess Mullaly on each element in communication openness including message transmission, trust, agendas, and goals.

Transparency to Mullaly was critical in ensuring that everyone knows the plan for the large and complex Ford company. Communicating the message was achieved by weekly meetings. The message clearly was to create viable Ford products. There were no secrets at Ford. The 280 performance charts, monitored if the goals and agendas were met. These performance charts included manufacturing, design, and dealer relationships. The message transmission was influenced by his in depth research on Ford prior to his arrival as CEO.

The research allowed him to develop a strategy about the auto franchise that in turn influenced all of his decisions. Communicating the strategy during his Thursday meeting held them responsible for communicating these measureable goals to all staff members. 5. Evaluate the effectiveness of Mulally’s leadership style and recommend whether he should continue with this style or use a different style. The reconstruction that Alan made to the company made people want to follow him.

He had the foresight to devise a plan so that Ford would not have to take a loan from the government. By focusing on a few products he managed to make these products, competitive on the market for safety and performance. To truly assess how Mulally plan worked results were will be in 2013. Mulally should ultimately incorporate more innovative tactics. The Theory Y beliefs to maintain an environment that subordinates will continue to want to help work for a company that’s successful.