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WELCOME TO

Ford

Human Resources at Ford

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Active in over 38 countries

Worldwide sales of $189 billion

Assets over $338 billion

Global workforce of nearly .5 million people

Celebrating 78 years in Australia this year

Ford is the 4th Largest company in the world.

Ford Motor Company

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Ford Motor Company of Australia

Employees approx. 5,500 people in Australia.

Company headquarters in Broadmeadows, along with the assembly plants, Customer Service Division, training centre and research & design centre.

In Geelong Ford has extensive casting, engine and stamping facilities as well as the product engineering centre.

Proving (Testing of Vehicle) ground located at Lara.

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Ford Motor Company Geelong plant opened 1925.

Broadmeadows Assembly Plant opened 1960.

Average 445 cars built per day (nearly 1 every minute).

Over 7km of production line.

18 Hectares of under roof area.

Over 65 nationalities represented throughout the plant.

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Ford Motor Company Ford part owns many Brands and Services around

the World.

Ford buys into other Companies for several reasons:

- It allows it to buy into Technology of other companies.

- It gains different Target Markets.

- Gains different Niche Markets.

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Ford Motor Company Other reasons for buying into other companies are:

- Language

- Cultural Differences

- Profit Motive.

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The Brands and Services

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What is Human Resource Management?

HRM – Activities necessary for staffing the organisation and sustaining a high level of employee performance

HRM at Ford - When 5,500 people work together as a confident, inspired and motivated team, the rewards are great.

“People are the Company’s only sustainable competitive advantage.”

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HRM at Ford HR functions:

Recruitment Advertising Application process Screening Testing Interviewing Referencing Selecting

Training & Development Induction (4 to 5 weeks training for New Staff) Competency based training (Vehicle Industry Certificate 2½ to 3 yrs) Team Development Training and Job Specific Training Organisation & personnel performance (O&PP)

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HRM at Ford (cont’d) Compensation & Benefits

Payroll Ford Privilege Club Superannuation

Corporate Citizenship FECCS – Ford tries to be a good Corporate Citizen by doing

good things for the community. What people think of you is important, as people must feel good about your product.

Labour Relations Industial Relations impact on employees. Enterprise Bargaining Agreements are quite flexible at Ford Union involvement is significant (Amalgamated Metal

Workers Union)

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HRM Practices at Ford (cont’d) Managing Diversity

Maintaining a fair and equitable workplace Worklife balance Ford has 67 different nationalities amongst a total of

1800 employees at the Broadmeadows plant, with 1400 employees, 250 management staff and 150 maintenance staff.

Ford has encouraged a program of English classes amongst those employees with limited English skills. Ford shares the cost of such English classes with the Employee.

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HRM Practices at Ford (cont’d) Managing Diversity

Observance of Religious Holidays for a range of ethnic groups. Eg. Greek employees were given the option to take a ‘strikeday’ as an RDO for their Greek Easter festival in 2002.

Shut down of the plant occurs at Christmas, Easter, Chinese New Year, Greek Easter and 2nd week of term 2 holidays.

Prayer rooms provided for religious employees. Zero Tolerance Policy. Harassment is not accepted

with employees sacked for breaches.

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HRM Practices at Ford (cont’d) Managing Diversity

Staff are provided with 3 RDO and 9 PDOs (Paid Day Off) per year at Ford. Employees can use thes when they want. Both staff and management prefer this as Ford is then able to plan its staffing in advance and can also plan its supplies for J.I.T.

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HRM Practices at Ford (cont’d) Other Cultural Issues

Safety is a major priority at Ford, so warning signs are designed in pictorial form to take account of language differences

Equal Employment Opportunity policies are implemented to ensure that various ethnic groups are not disadvantaged in relation to promotion, training, remuneration and leave.

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HRM Practices at Ford (cont’d) Work Schedules

The Broadmeadows plant operates on a flexitime work schedule based around the daily core times of 7:00 am to 4:30 pm.

Face time in a job is becoming less important than what is actually achieved in the job.

There is much lateral movement of staff before promotion occurs. Job Rotation is strongly encouraged. That is, an employee may spend 1 month in the paint shop, then 1 month in assembly, then 1 month in Quality Control. Job Rotation stops boredom and increases safety as if employees lose concentration due to boredom safety decreases.

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HRM Practices at Ford (cont’d) Work Schedules

Employees are grouped into Production Teams for motivational and reward purposes. Monthly trips are provided for winning teams on productivity.

Work Groups meet once a week to discuss any work problems which occurred in the previous week.

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HRM Practices at Ford (cont’d) Industrial Democracy

Ford has implemented a variety of participative styles of management including:

• Production teams setting output targets.• Employees submitting ideas for improved

production and operation via ‘suggestion box’ to management.

• Weekly meetings for 45 minutes to discuss ways of improving production. Production shuts down at this time and small production teams discuss these issues. Smaller teams are viewed as more beneficial and personable than larger groups.

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HRM Practices at Ford (cont’d) Training

Ford encourages a strong commitment by its employees to a vast range of training and development programs including specialist training in:

• Latest automotive production techniques• TQM practices at Ford including Quality

Assurance• HRM opportunities. That is, customer service,

recruitment, training, appraisal, induction.• Equal Opportunity policy• Negotiation skills with staff and management.

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HRM Practices at Ford (cont’d) Motivation

Rewards for 20, 25, 30, 35, 40 yrs anniversary Reward and Recognition Program – prizes given If individuals achieve their own top 5 priorities,

reward and recognition is given Job Rotation – every 2 to 3 months Motivational posters throughout the factory

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HRM Practices at Ford (cont’d) Recruitment

Ford outsources much of its recruitment to agencies to give it a cost effective advantage.

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HRM Practices at Ford (cont’d) National Work Groups (NWG’s) are

established at Ford. These are specialists groups in each section of Ford to help focus and achieve measurable goals.

NWG’s measure their performance with specific measurable indicators.

Example. Safety, Quality, Delivery, Customer Satisfaction, Morale, Waste reduction etc. are all measurable per NWG’s

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Restructuring HR must be change agents.

Change is needed.

If you stop change you become outdated and don’t attract the best people.

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Restructuring Tariffs decreased from 1990s which meant

quality and competitiveness needed to increase.

Ford cannot compete with overseas cost or price because of our cost of labour and our Standard of Living.

Thus Ford must compete on Quality.

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Restructuring Definitions:

Organisational structure – The organisation’s formal framework by which job tasks are divided, grouped and coordinated.

Characteristics of large organisations (>2,000 employees) Characteristics of smaller organisations

Organisational design – The developing or changing of an organisation’s structure.

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Restructuring (cont) Restructuring

Rebalancing• Upsizing – Ford is employing more people (70 to

80 people) because of the development of a new model eg. Designers, operators etc.

• Downsizing

Ford Restructured in terms of number of employees leading to Rebalancing.

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Rebalancing at Ford

Rebalancing is having the right people for the right job.

What drives the need for rebalancing? The ‘white water rapids’ metaphor (fast change, dynamic,

aggressive industry.

Sales position Current sales Forecast sales

• New models• Changes to current practices

Market share Increasing/ reducing capacity

Manufacturing complexity

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Current situation at Ford

Rebalancing in response to forecast need to increase capacity 2003 – 2005

Increasing production line speed

445 units per day (upd) currently

Increasing work complexity

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What does this mean for HR? Identifying targets

How are the Company’s objectives and strategies changing?

What does this mean in terms of jobs?

What does this mean in terms of training?

Communication

Corporate, cross-functional committees established

Union awareness sessions

Communication with current employees

Motivation considerations

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What does this mean for HR? (Cont’d)

Industrial Relations issues

How do the Unions perceive the changes?

Recruitment / staffing issues

How many?

How soon?

Job analysis considerations

Internal “churning” vs. external hiring

Training & development

Induction of new employees

Training & development of existing employees

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Benefits of effective HRM Competent, highly skilled employees

A lean, efficient human resource base

A diverse workforce

A mutually beneficial Company/Union relationship

An outcome in line with Ford’s Global Vision:

To become the world’s leading consumer company for automotive products & services, Ford must provide a business environment that will allow all employees to contribute their fullest potential.