...This paper is about Alan Roger Mulally (born August 4, 1945), who is an American engineer and businessman. Mulally is currently the President and Chief Executive Officer of the Ford Motor Company. Ford, which had been struggling during the late-2000s recession, returned to profitability under Mulally and was the only major car manufacturer to avoid government-sponsored bankruptcy. Mulally moved to Ford in 2006. He had worked at Boeing since 1969. He had been chief engineer for development of the 777, and was later Vice President of Engineering for commercial aircraft. Mulally had no sales experience, and he was not a “Detroit car man,” much less a car man at all. He sold his Lexus after moving to Dearborn. What is most impressive is Mulally’s “results oriented” leadership style. His management is crisp and authoritative, although he defers to the firm’s design experts on the minutiae of the product lines. But on the big questions of the company’s past mistakes and where it’s headed, Mulally made key decisions that placed Ford in good stead. When Mulally testified before Congress in December 2008, along with GM’s Rick Wagoner and Chrysler’s Robert Nardelli, he announced that Ford would be able to survive the recession without a bailout. The Role of Leadership and How It Can Impact Organizational Performance Leadership is an art, and like other arts, requires discipline, good techniques and self-expression. There are some basic rules or formulas connected with an art...
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...ALAN MULALLY, CEO – FORD MOTOR COMPANY The Ford Motor Company began its journey in the auto industry with the creation of the 1908 Model T. Henry Ford’s creation of the Model T changed the way in which people transported themselves on a daily basis. This paper will address how an iconic company such as the Ford Motor Company is currently negotiating the issues of organizational performance, leadership style, and goals for the company. Lastly, I will attempt to address the effectives of the changes that the Ford Motor Company has made and continues to assess. Discuss leadership and how it can impact organizational performance. Leadership is, simply put, the art of inspiring and motivating others into motion in order to achieve an aspired goal. The leader sets the direction of action and takes part in the process, whether alone or as a guide to a team, so as to accomplish a set goal. In the world of business transactions, leaders who are successful and effective are those who inevitably increase a business’ productivity. There are so many different styles and models of leadership. Each style or model can be both successful and unsuccessful in reaching goals, contingent upon the context in which the style or model is being used. Reaching the productivity goal is dependent upon the success of the leader to effectively evaluate and motivate the team. In my opinion, after reading the accounts of so many businesses (such as Ford, Campbell’s Soup, DineEquity, and PricewaterhouseCoopers)...
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...Assignment #3 Case: “Alan Mulally, CEO, Ford Motor Company” Quinisha Story Dr. Edward Olanrewaju BUS 520: Leadership and Organizational Behavior Sunday November 14, 2010 1. Discuss the role of leadership and how it can impact organizational performance. Leadership is defined as the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources. The role of a leader is very vital in a company. The ability of organizations to achieve their goals depends on the degree to which leadership abilities and styles enable managers and team leaders to plan, organize, control, influence, and act effectively. The leader must learn and handle the behaviors of employees, very knowledgeable of the company and its competitors and customers. The leader helps determine and set the tone for the company successes and failures. 2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. The leadership style that Alan displays at Ford is the behavioral model of leadership which focuses on what leaders actually do and how they do it. He uses the selling style, the leader provides direction, encourages two-way communication, and helps build confidence and motivation on the part of the follower. He also models the Facilitate...
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... Alan Mulally, CEO, Ford Motor Company Professor: Dr Patrick Sanderson Submitted by: John-Miguel Onkony Course: Bus 520 Strayer University Fall Quarter 2011 1. Discuss the role of leadership and how it can impact organizational performance. Leadership is defined as the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources. The role of a leader is very vital in a company. The ability of organizations to achieve their goals depends on the degree to which leadership abilities and styles enable managers and team leaders to plan, organize, control, influence, and act effectively. The leader must learn how to handle the behaviors of employees, and they also have to be very familiar with the company and its competitors and customers. The leader helps determine and set the tone for the company successes and failures. Business owners will set the leadership tone for their organization by developing a mission of values to operate their company. Company policies or...
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...Alan Mulally, CEO, Ford Motor Company Emmanuel C. Njoku Dr Stacey McCroskey Bus 520 11/11/10 Introduction This paper is a case study on “ Allan Mullally CEO, Ford Motor Company” which discusses, firstly the role of leadership and how it can impact organizational performance. Secondly Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Thirdly how goal setting helped Ford improve its performance. Fourthly, asses Mulally on each element in communication openness including message transmission, trust, agendas and goals. Fiftly, evaluate the effectiveness of Mulally’s leadership style and recommend whether he should continue with this style, or use a different style. Discuss the role of leadership and how it can impact organizational performance. Hellriegel, D and Slocum, J. W ( 2011 ) Organizational Behavior. Legitimate power is an individual’s ability to influence others behaviors because of the person’s formal position in the organization. Mulally decided to borrow $23 billion against Ford’s assets in 2006 . Mulally is moving to integrate the company globally, in 2010 Ford will be selling small cars in the United States that were developed in Europe. Hellriegel, D and Slocum, J. W ( 2011 ) Organizational Behavior. Expert power is an individual’s ability to influence other’s behaviors because of recognized competencies, talents, or specialized knowledge. For example Mulally...
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...competently organize the cooperation and assistance of all members of the company to accomplish goals and objectives. The constantly changing wants and needs of the consumer have made it necessary for leaders to create strong organizational cultures so that companies can continue to expand into the future. According to Hellriegel & Slocum (2011), Alan Mulally’s leadership has resulted in Ford making some strategic moves. His skills and style has helped Ford to move ahead in the industry during the economic recession. Ferrell, Hirt & Ferrell (2009) argue that an effective leader is one that is task-relevant and most successful when they adapt their leadership style to the individual or group they are attempting to lead or influence. By understanding the ins and outs of how things should be run within the company, a leader can quickly and efficiently adapt their leadership styles to the individual or group situation that requires attention. According to Ferrell, Hirt & Ferrell (2009), it is widely believed that leadership creates the vital link between organizational effectiveness and people’s performance at an organizational level. Effective leadership behaviors can facilitate the improvement of performance when organizations face today’s new challenges such as innovation-based competition, price and performance rivalry, decreasing returns and market volatility. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style Mulally’s...
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...the company’s vision.” (Vitez) Leadership can have an impact on an organization’s performance. Business owners will set the leadership tone for their organization by developing a mission of values to operate their company. Company policies or guidelines are set from the company's mission or values “Successful organizational performance relies on the proper behavior from managers and employees.” (Vitez) Effective leadership can transform an employee from a worker completing tasks to a valuable asset to the team by instilling an ownership mindset. Employees with this belief they often find ways to improve their attitude and productivity. Leadership skills can also be used to get managers and employees on the same page with the same goal and to correct poor business practices. 2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Alan Mulally has a combination of a relationship behavior style and a task behavior style. In the case it is stated, “Mulally’s leadership has resulted in Ford making some strategic moves.” (Hellriegel, & Slocum page 543) His skills and style helped Ford to move ahead in the industry during an economic recession. According to Lewis Booth, chief financial officer at Ford, “Alan’s style is pretty relentless.” He says,” If this is the reality, what are we going to do about it?” (Taylor). He interviewed dozens of employees, analysts, and consultants. He developed a point of view about...
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...Abstract Ford Motor Company is an American multinational corporation and one of the world’s largest automakers based on worldwide vehicle sales. On June 16, 1903, Henry Ford founded and incorporated the business which continues to operate and is controlled largest by the Ford family for over 100 years. This paper will discuss one of Ford’s CEO’s, Alan Mulally, who is currently the company’s president and chief executive officer. This paper explores the role of leadership and how it impacts the organizational performance at Ford Motor Company. This paper discusses Alan Mulally’s leadership style and how goal setting helped Ford improve its performance. In addition, an assessment of Mulally’s leadership will analyzed on each element in communication openness including message transmission, trust, agendas, and goals. In summary, an evaluation of the effectiveness of Mulally’s leadership style will be discussed along with a recommendation on whether he should continue with his style, or pursue a different style. (Hellriegel, D., & Slocum, J W, Jr. 2011) The Role of Leadership and its Impact on Organizational Performance Leadership is an important function in any business and should establish a clear vision while communicating the vision to others. Leadership can have a significant impact on an organization’s performance. The role of leadership is the act of motivating people toward reaching a common goal. There are three types of leadership which commonly exists in...
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...leadership and how it can impact organizational performance. In order for any company to succeed, there needs to be someone to lead that company in the right direction. There needs to be someone who not only knows about the company and where it needs to go but also how to take its resources (its employees, its equipment) and put it together to come up with a winning formula. The role of leadership is very important and the goals that a company wants to meet won’t be attainable without an effective leader. A leader needs to be able to motivate and influence its employees. Leaders need to know how is the best way to go about to make its workforce succeed in accomplishing the company’s goals. A workforce is diverse with many employees with different backgrounds, personalities and opinions. An effective leader, manager, director will need to somehow find balance between all these differences and bring together the strengths of their employees so that they can work together to achieve the same goals. Without good leadership, performance will decrease and accomplishing goals will become hard to do. Effective leadership can weather the different storms that come by whether it is increased competition, decrease of market share, or other challenges that could occur. An effective leader needs to be able to adjust and make any necessary decisions in order for the employees and the company to succeed. With so many different challenges in the world today, being a leader is...
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...clear, concise, open, and honest and conveys those characteristics to employees, he/she is able to gain the trust and loyalty of the employees. Employees who feel that they are valued, respected, and trusted feel happy about the organization and are more likely to put forth maximum opportunity in reaching for the goals. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Mulally’s leadership style is selling. “In using a selling style, the leader provides direction, encourages two-way communication, and helps build confidence and motivation on the part of the follower” (Hellriegel & Slocum, 2010, p.306). Upon joining Ford, Mulally was able to identify specific goals for the company, implement a process to work toward the goals, and install managements system to ensure that the goals are met. As communication is key and Mulally insists that everyone knows the plan, its status, and where special attention is needed. To let everyone know what his plans for the company are, he created plastic cards with four goals on one side and a revised definition of the company on the other. To ensure involvement by...
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...http://www.reuters.com/article/2013/10/22/whitbread-results-idUSL5N0IC0O020131022 UPDATE 1-Expansion helps Whitbread post first half profit rise Firm on track to hit 2018 expansion targets * Opened 12 hotels and 153 net Costa stores in H1 LONDON, Oct 22 (Reuters) - Britain's biggest hotel and coffee shop operator Whitbread posted a 12.6 percent rise in first half profit as new Premier Inn hotels and Costa Coffee stores helped boost sales. The group, which also operates pub restaurant chains, on Tuesday said underlying pretax profit rose to 216.1 million pounds ($349.18 million) in the six months to Aug. 29, slightly ahead of a company compiled consensus forecast for 213 million pounds. Revenue jumped 12.4 percent to 1.14 billion pounds. Whitbread, which makes almost all its sales in Britain, has expanded rapidly due to demand from cost-conscious customers for affordable hotels and a rising popularity for takeaway coffee, helping underlying pretax profit grow by 12.0 percent per annum since the onset of the recession. On Tuesday it said it was on track to meet targets to grow Premier Inn UK rooms by 45 percent to 75,000 by 2018, and double Costa's total sales to 2 billion pounds through expansion at home and abroad, with a particular focus on China. Total sales at Premier Inn rose 12.2 percent in the first half, boosted by 12 new hotel openings and strong business-led trade in London. Like-for-like sales were up 3.3 percent. Revenue per available room (RevPAR), a key industry...
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...driving a Ford, or they know someone who has. Henry Ford was known as an amazing innovator. Ford's history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some downturns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. The research conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the plan executed will be discussed. Also, the rationale will be provided for other procedures that could have utilized in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college, he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his incredible contributions. According to "Ex-Ford Ceo Alan Mulally Joins Google’s Board Of Directors" (2013-2015), "Notes that from March 2001 to September 2006, Mr. Mulally served as Executive Vice President of the Boeing Company and President...
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...The Transformation of the Ford Motor Company Most adults today have had the pleasure of driving a Ford, or they know someone who has. Henry Ford is known as an amazing innovator. In 1903 with $28,000 in cash, Henry Ford started the Ford Motor Company, whose automobiles changed how the world moved (FORD, 2014). Ford’s history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some down-turns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. Research was conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the strategy was executed will be discussed. Also, rationale will be provided for other strategies that could have been used in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his amazing...
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...Running head: INNOVATIVE CHANGE AT FORD MOTOR COMPANY Innovative Change at Ford Motor Company Keller University Human Resources 587 August 24, 2014 Abstract Since Alan Mulally took over as Chief Executive Officer (CEO) for Ford Motor Company the business has been transformed into a powerful competitive force in the global automotive industry. An examination of the company’s communications surrounding Mulally’s retirement and the appointment of Mark Fields as the new CEO demonstrate how Ford used positive and candid communications to overcome resistance to the change. Actions as simple as providing verbal and nonverbal cues have a powerful influence on how others perceive a change (Nekoranec & Fourrier, 2013). A proposed alternative communication plan, including the use of more communication channels with increased frequency, would have helped the company address some of the fear and uncertainty among stakeholders. An example of an internal memo is provided to show how the use of positive and supportive descriptions of the change can motivate stakeholders to act as change agents on behalf of an organization by embracing the change and recognizing their essential role in the process. Innovative Change at Ford Motor Company In the past few decades Ford Motor Company has experienced a series of disruptive changes pertaining to the company’s leadership. In 2006, the appointment of Alan Mulally as the company’s Chief Executive Officer...
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...Case Study Alan Mullay, CEO, Ford Motor Company “Alan Mulally, CEO, Ford Motor Company” Ford Motor Company was started in 1903 in Detroit, Michigan, by Henry Ford. 2006 brought a tremendous change to the multinational automobile producer, when Alan Mulally came to the head of line to lead Ford into a new era. In the past several years, Ford has been in danger of failing, causing a shift in its global position and a restructure of its company portfolio. Ford has become a global competitor with brands including Lincoln, Mercury, Mazda, Aston Martin, Jaguar, and Land Rover. Mulally was welcomed to his new position with a financial crisis waiting on his desk. Although never working in the auto industry, Mulally had a plan to manage Ford out of the economic down spiral it had it found itself with the foreseeable economic challenges of the entire US economy. Ford has reported losses for the pass several years. * Lost of $12.6 billion in 2006 * Lost of $2.7 billion in 2007 * Lost of $14.7 billion in 2008 * Lost of $1.4 billion in 2009 (first quarter) (Hellriegel, 2011) Mulally created more debt to make up the shortages by borrowing to keep Ford from government bailouts. Under the Mullaly reconstruction, Ford will discontinue the Mercury line in 2010 year end, maintained a stake in Mazda and Aston Martin and sold off subsidiaries Jaguar, Land Rover and Volvo within the last two years. While realizing the loses and selling of part of their portfolio...
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