This paper examines Ford Motor Company's key business strategies — sustainability-focused vehicle development and operational streamlining — and analyzes how its human resources function can align with and support those goals. Drawing on Ford's landmark 2006 borrowing decision and its divestiture of underperforming brands, the paper recommends specific HR initiatives including green-oriented recruiting, sustainability training, telecommuting policies, and results-oriented performance management. It also proposes measurable evaluation criteria, such as reductions in energy use and paper waste, increases in worker productivity, and stronger consumer brand cohesion, to assess the effectiveness of HR efforts.
Of all the troubled "Big Three" automakers, Ford was the only one that did not need major financial assistance or government-supervised restructuring. This was seen partly as a result of Ford's commitment to incorporating sustainability into its vehicle designs far earlier than either General Motors or Chrysler. As The New York Times noted, "Ford's current strength stems from what was a literal bet-the-company decision in 2006 to borrow $23.6 billion, putting even the company's fabled blue logo up as collateral. That money helped Ford move more quickly than General Motors or Chrysler to bring out new lines of more fuel-efficient vehicles, and, more crucially, provided a cash cushion when the car market tanked along with the economy in late 2008" (Ford Motor Company, 2010, The New York Times).
Ford Motor Company has sold off its luxury brands, including Jaguar, and divested most of its less popular brands, such as Mercury and Mazda (Ford Motor Company, 2010, The New York Times). Ford's primary strategies are "greening" — capitalizing on the sustainability trend — and streamlining its operations.
HR can play a key role in advocating sustainability within organizations by hiring individuals with backgrounds in sustainability and experience in green jobs. Even when recruiting from college campuses, Ford can target candidates who have demonstrated initiative and interest in environmental responsibility through participation in environmentally-focused groups.
As part of its orientation program, HR must communicate Ford's green policy to all new hires through training materials. Beyond discussing diversity and corporate culture, every new recruit should be asked to sign a pledge committing to minimize personal waste at the company, as well as waste in their specific job functions. Recruits at every level should receive education on Ford's environmental perspective and on how new Ford vehicles contribute to the betterment of the planet. Workers at all levels should be invited to submit ideas about how their particular division can become more environmentally responsible, and standout suggestions should be highlighted on the corporate website. The company should also share information about how workers can make their own lives greener — for example, by using products made from environmentally friendly materials and reducing meat consumption (Bolch, 2008).
HR can also take practical steps to reduce the carbon footprint of employees by allowing telecommuting wherever possible. Reducing paper usage through electronic communications, electronic payments, and shifting all new and revised documents online can also result in significantly less waste. When HR is mindful of its own resource consumption, it sets a meaningful example for the rest of the organization.
In terms of Ford's efforts to sell off lagging brands and create a more cohesive and efficient company, HR can offer support by communicating a clear sense of organizational mission to all employees. In an organization as large as Ford, it is easy for different divisions to become so disconnected that they develop divergent corporate cultures. A centralized HR authority must set the tone for all personnel, and a clear sense of ethics and purpose must underpin every interaction between HR and employees at every level of the organizational hierarchy.
As Ford works to grow more efficient, HR may consider implementing new ways of working, such as pay-for-performance, flextime, and evaluating management based on results rather than hours logged — the kind of results-oriented workplace model pioneered at organizations such as Best Buy. Judging workers by what they produce rather than by the hours they physically spend at work places the focus on output, which is consistent with Ford's broader philosophy of streamlining, downsizing, and growing more competitive (Smashing the Clock, 2006, Bloomberg Businessweek).
Actively reducing Ford's carbon and physical waste is measurable through energy consumption at facilities and the actual volume of refuse discarded by the company. Tracking the number of employees who have adopted more sustainable working practices — thanks to HR-driven initiatives such as telecommuting and paperless workflows — provides another concrete metric.
"Cohesive culture, performance pay, and flexible work models"
"Quantitative and qualitative metrics for HR evaluation"
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