Ford Toyota (Finaleeee Presentation)

8/8/2019 Ford Toyota (Finaleeee Presentation)

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Prepared by: Alejandro Afonso

Almaida Arsyad

Beng¶yela Ngwa

Marcel Gustam

Mohamed Abdalla

Sulaiphak Ardwong

MOTIVATION AND LEADERSHIP STYLES

IN FACING THE ECONOMIC CRISISBY FORD AND TOYOTA



Companies Introduction

National Cultures

Companies Culture

Case StudyThe World Economic Crisis

Facing the Crisis

Overcoming the Crisis

Companies within Cultures

Conclusion



CompaniesIntroduction



` Global automotive industry leader based in Dearborn, Michigan

` Distributes automobiles across six continents

` With about 70 plants worldwide

` $1.7 Billion net income in third quarter 2010



` Toyota Motor Corporation is an automobile maker based in Japan.Founded in1937

` Specialises in the manufacture of passenger cars and lightcommercial vehicles

` Approximately 69,748 employees (316,121 including affiliatedcompanies)



National Cultures





` Make their own decisions and take credit for their own success inhighly individualistic country

` People¶s status is a function of their performance

` Outstanding individuals to mobilise resources in unprecedentedways

` Individualism encourages the lone adventurer and the entrepreneur

` Focus on leading the individual or the team





` Emphasis is on personal responsibility and decision-making

` Success is achieved in groups, decisions are referred to committees, andgroups jointly assume responsibilities

` Engage in more than one activity at a time, appointments are lessadhered to, and schedules are subordinated to relationships

` Make decisions in groups, responsibility for those decisions is shared

collectively

` While individual expertise is important, all project team members aretreated as equal







Companies Culture



` Company Oriented

` No Transparency

` Communication gap existed



` Customer Focus

` Tough Operational Oversight & Harsh Warning About Ford¶sPredicament

` Employee has to answer questions certainly and reliable

` Communications between groups

` Treats employees equally

` Save Cost



One Team People working together as a lean, global enterprise for

automotive leadership

One Plan Operate profitably at the current demand

Development of new products

Work together effectively as one team

One Goal An exciting viable Ford delivering profitable growth for all



³Employees have to operate in a culture where they constantly grapplewith challenges and find solutions by transcending differences

rather than resorting to compromises.´

(Takeuchi et al 2008)

` This is a founding factor of the Toyota Way

Long-term philosophy

The right process will produce the right results

Add value to the organization by developing your people Continuously solving root problems drives organizational learning



Case Study





Ford Toyota

` Allan Mulally as the TurnaroundSpecialist

` Shut 17 plants

` Weekly meeting with theemployees

` Focus on customer needs

` The Toyota way

` Cut work to a single shift on 17production lines out of its 75around the world at different timesin January and February

` Toyota staff agree to cut in pay

and hours to save jobs



Ford Toyota

` In 2009 Ford reported a profit of $2.7 billion

` In 2010 Ford posted 40%increase in sales over previousyear

` In 2010 Toyota posted 41%increase in sales over previous

year

` Toyota crisis (estimated it willhave to spend $1.12 billion onwarranty expenses and will loseas much as $895 million in lost

sales over the recall)



Applicability of Theories



Content and Process Theories

Maslow¶s Need Hierarchy(Content)

Physiological: Basic needs fulfilled Safety: Short term job security Social: Recreation programmes Esteem: Self Respect, and the respect from

others. Accept and promote diversity Self actualization: Employees reaching fullpotential?

Goal Setting(Process)

Mulally setting short term specific goals andrewarding with extrinsic rewards

Taylor¶s ScientificManagement

Allan Mulally¶s $20,5 million income Cash incentives on vehicles



Content and Process Theories

Maslow¶s Need Hierarchy(Content)

Physiological: Basic needs fulfilled Safety: Long term job security

Satisfy lower level needs

culture of continuous improvementsupports growth towards self

actualization

Goal Setting(More intrinsically applied)

Sets goals that meet these criteria throughµHoshin Kanri¶. Continuous

measurements relative to targets

Taylor¶s ScientificManagement

All scientific management principlesfollowed but at the group level rather thanindividual level and based on employeeinvolvement



In-depth understanding of work

General management

Knowledge



Closing Stages



Ford Toyota

Individualism

Society¶s perception about Alan Mulally µOne Ford¶Culture

Communicating honesty

Valuable feedback

There is no µSuper Star¶ Collectivism is the rule Everybody is rewarded or punished (salary reduction)

Long Term

Orientation

Changeable CompanyCulture IncorporatingµSustainability¶

Company Culture basedon Society¶s Principles Leaders come from blue-collar positions



Ford Toyota

Motivation

Performing inindividualistic andmasculine society

Performing in collectivisticand masculine society

4 P¶s

istorically ased onProcesses (eliminating

aste)

ocused on Pro lemolving (continuous

im rovement) and Peo le(res ect and develo staff)



` Toyota looking to outsource activities in order to cut down expenses (focuson Process)

` Toyota and the lack of outsiders (narrow perspectives)

` Ford underestimating individualism as a way to focus on the wholecompany

` Companies are willing to make substantial investments in employee trainingand development, there will be longer-term job security, and promotions will

come slowly (presence in Graduate Programmes in westernC

ompanies)

Sometimes, there is greater

variation within single culturesthan across cultures





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` Bailey, D., 2008. Ford to offer employee pricing, cash incentives. Reut ers Online. Available from:http://uk.reuters.com/article/idUSTRE4AD8K120081114 [Accessed 9 November 2010]

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` Mail, 2009. Car industry crisis deepens: Ford workers threaten to strike over planned pay and jobcuts. Mail Online. Available from: http://www.dailymail.co.uk/news/article-1136696/ Car-industry-crisis-deepens-Ford-workers-threaten-strike-planned-pay-job-cuts.html#ixzz15ph8tonB [Accesed18 November 2010]

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Ford Toyota (Finaleeee Presentation)