Ford Motor Company Indian Subsidiary Paper Example

Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India. Ford India Private Limited’s head quarters are located in Chengalpattu, Chennai, Tamil Nadu. It currently is the 6th largest car maker in India after Maruthi Suzuki, Hyundai, Tata, Mahindra and Chevrolet. The modern Ford India Private Limited began production in 1996, although the roots trace back to 1907 when the Model A was launched. Its manufacturing facilities are in Maraimalai Nagar near Chennai.

Ford India Private Limited began production in 1926, but was shut down in 1954 as the company was in loss. Production began again with the joint venture Mahindra Ford India Limited (MFIL) in October 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford Motor Company increased its interest to 72% in March 1998 and renamed the company Ford India Private Limited. The total investments made by Ford Motor Company since it set shop in 1995 stands at $2 billion as of April 2012. Ford India Private Limited has implemented best HRM practices.

CORPORATE GOVERNANCE The management team of Ford India comprises Joginder Singh (President & Managing Director), Sandip Sanyal (Executive Director – Operations), Vinay Piparsania (Executive Director, Marketing, Sales and Customer Service Operation), Kuljit Rana (Vice President, Finance & Whole time Director) Vairamani Pandiyan (Vice President, HR). SALES PERFORMANCE In the year 2010, FIPL recorded sales of 83,887 vehicles against 29,488 vehicles sold during the year 2009 and registered a sales growth of 172%.

SALES AND SERVICE NETWORK As of December 2012, FIPL has 260 dealerships across 123 cities in 22 states and 3 Union Territories of India. EXPORTS Ford India currently exports 40 percent of its engine production and 25 percent of its car production to 35 countries, some of them are, South Africa, Nepal, Mexico, Kenya, Bahrain, Angola, Bermuda, Ghana, Iraq, Liberia, Lebanon, Malawi, Madagascar, Mauritius, Nigeria, Senegal, Tanzania, UAE, Zambia and Zimbabwe. MODELS CURRENT

1. Ford Endeavour (Launched 2003) 2. Ford Classic(Launched 2005) 3. All New Ford Fiesta (Launched 2011) 4. Ford Figo (Launched 2010) 5. Ford Ecosport (Launched 2012) DISCONTINUED 1. Ford Ikon (1999–2010) 2. Ford Escort (1996–2001) 3. Ford Mondeo (2001–2006) 4. Ford Fusion (2004–2010) HRM PRACTICES IMPLEMENTED IN FORD Mr. Vairamani Pandiyan (Vice President-HR, Ford India Pvt. Ltd. ) has been in the field of HR right from the beginning of his career, around 27 years ago.

After completing his undergraduation in Psychology, he opted for an MBA “out of curiosity, since the course was not too common at the time”, and then completed his specialisation in HRM and OB because he loved dealing with people, and “you can never fall short on challenges when you are dealing with people. ” Having worked with The Tata Group for almost 18 years after that, he has garnered experiences in various streams of HR, including industrial relations, compensation management, and training and development. “It has been a very interesting journey for me.

At times, it is important for HR people to explain what they bring to the table,” he says. Apart from the automobile manufacturing business, Ford has two other business interests in India: Ford Business Service Centre (FBSE – a business process centre for Ford’s global operations) and Ford Information Technology Services (the hub for the company’s IT and engineering initiatives in India and the Asia Pacific region). Mr. Pandiyan joined Ford India (FIPL) in September 2006 and took up the position of Vice President in January 2008.

He serves as a member of the Board of the FBSC, and also represents Ford in India in the HR Council of the Conference Board, and Confederation of Indian Industry. Mr. Pandiyan says that he would want to continue such professional associations after his retirement, but is also keen to continue his education and pursue a Ph. D in Organisational Behaviour, in order to become an “effective HR catalyst”. He explains this, “HR is supposed to be invisible, but not inactive. We have to put other people in the front. HR has to act as a catalyst for making things happen.

Ensuring that employees reap maximum benefit from HR is, in fact, the biggest challenge of the function. HR has to make the biggest impact, but quietly. HR has to contribute even when it is not in the limelight. We may be able to assess capacities of cars, engines and equipment, but nobody can do so for humans because they have the ability to exceed expectations. ” HR at FIPL indeed must be strong as a result of such thinking, since the company was recently voted amongst the top 25 Best Employers in India in a study done by Hewitt Associates.

FIPL has over 5000 employees, and considering the huge potential in the automobiles segment, Mr. Pandiyan comments on the growth and expansion plans of the company, “There are a lot of expansion activities due to take place. We look forward to increasing our capacity and coming up with new products. With so much being planned, the HR team has its role cut out and we have ensured a ratio of one HR person for every 100 employees. ” This HR team has been working hard to introduce interesting policies for the employees, and the ‘HR Forum’ is one such initiative that goes beyond the supervisors and HR, to involve peers as well.

The framework for this forum is provided by Personal Development Committees (PDC), wherein employees across all levels meet regularly to discuss issues related to individual development. With such intensive forums for employees being implemented at the company, training and development is given special attention at FIPL. Mr. Pandiyan reinforces, “We have allocated for a minimum number of training hours in our beginning-of-the-year budget. The actual training is fairly varied. There are technical-oriented programmes, as well as leadership and managerial programmes, and the appropriate modules are chosen as per individual requirements.

While some programmes are relatively short-term (ranging from 3-4 days), the others are on-the-job. We have also inked some tie-ups with colleges for year-long academic courses in order to help employees prepare for higher-end jobs. At the technician level, this is known as ‘Career Development Programme’, while the ‘Career Mentoring Programme’ helps technicians become managers. People are selected for these programmes through a process, and the MBA option is available to engineers and managers as well through our tie-up with Loyola Institute of Business Administration. ”

The stringent focus on training has allowed for systematic succession planning at FIPL. This takes place through ‘Individual Development Process’ (IDP) wherein forms are used to record the discussions between the individual and the supervisor. The results are sent to the respective PDC, which allows for better placement of employees across the organisation. The other function of PDC involves communicating customer feedback to the employees through their supervisors. This allows the employees to understand the areas that they need to work on, whether it is through training or specific assignments.

The HR team at FIPL maintains an organisational database regarding employees’ aspirations, strengths, and peer as well as supervisory feedback. The transparency in HR allows for good industrial relations and employees are engaged in a lot of CSR activities too. Explains Mr. Pandiyan, “The time and efforts of employees are converted into socially productive activities, whether it is for a day-long event or an ongoing project. Employees like to get involved with the community and society around them, and examples of their social projects include work on dispensaries, employment counselling for women, and traffic safety.

These activities do not require much money, and are very effective in making employees feel motivated. Moreover, many times villagers come up to us to appreciate the work we do, and that is very humbling. As a company, we have successfully been able to combine employee engagement with CSR. ”| The values of openness and transparency are carried forward into the company’s communication policy as well, which remains the same in good and bad times. The management endeavours to share the true picture with employees about the company’s position and the challenges it faces through the ‘All-Hands Meet’.

Such meetings are addressed by the MD and attended by all workers. The MD highlights financial results from the previous quarter, and discusses the outlook for the upcoming quarter. This initiative is carried out at the global level of Ford operations. Ford is an Equal Opportunity Employer, and the recruitment team looks beyond the background of the employees, focussing on qualifications and job suitability instead. The company has very strict organisational norms against discrimination. The orientation process includes an intensive session on the company’s values, vision and philosophy.

Respect is a keyword, and the atmosphere in any Ford office is quite informal. Another interesting aspect about HR at Ford is the global exposure provided to employees. They get a chance to work and interact with people from across the globe, and in certain cases travel to places like Europe and Australia. Overall, Mr. Pandiyan believes that HR at Ford is about “profitable growth for all”. This policy of inclusive growth has ensured that Ford tracks pretty well in terms of attrition figures. The rate varies between 10 to 11 per cent, and this compares favourably against the competition.

“We try to make sure that everybody has an interesting job and has something to look forward to – this keeps us in business. Being a large organisation, our employees have various growth opportunities, and many of our managers have been going abroad,” affirms Mr. Pandiyan. Ford is planning to enter the volume segment of the Indian market in 2010 through the introduction of a new car. Even during the current downturn, their business is growing, and hiring has not been curtailed. The company usually hires people at the entry-level, and lateral and senior-level recruitments are rare.

Entry-level recruitment, Mr. Pandiyan says, takes place at two levels. At the factory/shop floor, the company looks for diploma holders. On the managerial level, postgraduates or those with professional qualifications are preferred. Ford does not really recruit externally, unless the need is for a high level of specialisation which is not available internally. Mr. Pandiyan confirms that FIPL has not laid off even during the current tough time. The company has, in fact, focussed on efficiency improvement programmes to ensure that internal talent is developed continuously.

“The Indian HR arena will certainly see more evolution in terms of becoming a part of the business. As time goes on, company heads will start to appreciate the contribution of the HR function. Once upon a time, HR was only about administrative activities and compliance. Now, it is a very interesting and exciting career option. ” CONCLUSIONFord India Private Limited is a car manufacturing company. When the company was introduced in India during 1996 it was not a success. Now the company is among top 8 largest car manufactures in India. This success is mainly because of the best HRM practices implemented in Ford. ANSWER 3| |