Final Milestone Submission

Leadership: Milestone 5

Student's name

Course name and number

Instructor's name

Date submitted

Leadership style of at least three areas of Ford Motor Company

Alan Mulally was a president and chief executive officer of Ford Motor Company and a board of directors from 2006 to 2014 June. Mulally transformed Ford Motor Company and reinforced leadership style to the team. The leadership style used by Mulally was open and inclusive. This leadership style presented and transformed Ford Motor Company. He transformed the teams to adopt a transformational leadership style where all teams are goal-oriented. The positive effort made in the company reinforces the improvement of performance (Hoffman, 2012). 

Jim Farley, Ford Motor Company's CEO, uses a transformational leadership style. He seeks to use the company’s full strength. Farley considers valuing opinion and autonomy for others. He is a car enthusiast’s champion who values vintage cars. With his leadership style, he targets consistent operating performance and invests in customers and growth. Farley is goal-oriented since he ensures that the whole company knows about the company’s plans and goals. This has helped in increasing the association among employees and other staff and leaders in the company. One of the main priorities of Farley is performance orientation. The company’s performance is aligned with employee individual performance. Farley also emphasizes the importance of trust hence boosting employee motivation and quality relations. Farley’s management and leadership style are unique hence keeping teams oriented ad delivering positive energy. His leadership style has increased employees' commitment. Lastly, Farley has promoted honesty and a positive vibe in the company.

The leadership style used by the board is transformational. This has caused a change in performance, leadership, and culture at Ford Motor Company. The leadership style can be explained using the leader-member exchange theory. This theory illustrates that leaders have different kinds of exchange relationships with employees (Hoffman, 2012). 

Leadership style of Ford Motor Company’s largest competitors

One of Ford Motor Company’s largest competitors is Toyota motors. The leadership model used features teamwork, collaboration, and consensus. Toyota leaders serve the organization. Toyota’s culture is based on leaders eradicating their flaws and limitations, which may impact the organization negatively. Although Toyota has faced several difficulties, it is still among the leading companies in the industry. Toyota is considered the creator of the lean leadership strategy. This strategy has been effective and consistent with Toyota’s strategy and culture (Keough, 2012).

To understand the effectiveness of lean leadership, some factors of a company’s culture should be considered. Toyota’s culture uses 4P model. They are philosophy, people/partners, process, and problem-solving. These features are based on open communication, trust-building, and development and training. The two important parts of Toyota’s culture are external parts and internal parts. The external part is the customers, while the internal part is on the employees and their involvement in organizational culture.

Toyota leadership Toyota leaders use a distinctive approach and philosophy that fits Toyota Way. Leaders use two-dimensional leadership practices. The practices differentiate Toyota leaders from other companies. Leaders can also choose to use either top-down directives or bottom-up styles. They can be used in thinking and making the right decisions. Toyota leaders involve their employees who are passionate about value-added work in improving processes. Leaders are also equipped with an in-depth understanding of their work and lead people, be mentors and develop technical knowledge. The four main common traits of leaders in Toyota are: focusing on long-term purposes to promote value addition, focusing on Toyota Way, focusing on detailed work, and viewing problems as an opportunity to train and coach the employees (Keough, 2012). The main goal of Toyota's leaders is to develop employees to be strong contributors to think and follow the Toyota Way at all levels.

Ford Motor Company’s leadership team as compared to other styles and competition

The leadership style used in Ford Motor Company is the most appropriate. From the characteristics described above, one of the leadership styles is participative or democratic. Everyone is included in the organization. Ford acknowledges the vital role played by the workforce in the success of the company. Therefore, it provides its workforce with ongoing skill development and empowerment opportunities, creating a culture of personal and professional growth (Hoffman, 2012). 

The operations team ensures that it provides the workforce with a safe, positive, and diverse working environment that promotes innovation, teamwork, and talent development to develop future leaders. Due to this, it has maintained a high proportion of employees with an exceptional long track record. It has an impressive number of long-service. This indicates that Ford Motor has maintained a dedicated staff to help the company become a global leader in the industry.

Leaders who keep the company's workforce engaged encourage them to stay connected. This has been an essential element of the people strategy. Leaders ensure that they communicate with the workforce openly and transparently. Policies and procedures information, negotiations, and consultation with the workforce have maintained employee engagement. The company also has employee resource groups that conduct events and initiatives every year. The aim is to engage employees and provide them with insights. Not only does the company engage the employees but communities as well (Hoffman, 2012). Employees and retirees are offered to participate in volunteer programs. These programs are essential in helping those in need ad inspiring and energizing employees.

The leadership style varies from one area to another within the company. Leadership styles should vary from one area to another. Adaptability is the main key to successful leadership. Leaders should be flexible and effortlessly when shifting from one leadership to another to meet the changing requirements of organizations. For instance, in Ford Motor Company, the leadership style used by the CEO and operations team is different. This is essential in addressing the needs of a global market and diverse workforce, adapting to different circumstances, solving workplace challenges, simplifying management, and matching leadership styles to workplace dynamics. Therefore, different leadership styles can be used in matching with particular circumstances and employees.

The main characteristic of the leadership style of Ford Motor Company and Toyota Motors is employee empowerment. Both organizations empower their employees through training programs, incentives, and employee resource groups. By empowering employees, they are accountable for their behavior, achieve credibility, produce excellent results, and using a positive approach to operate (Gist, 2020). Both employees are encouraged to be innovators and managers of their work. From the two organizations, Toyota has a good leadership style compared to that of Ford Motor Company. Ford Motor Company's practices of employee involvement and engagement are intensive as compared to that of Toyota. Ford Motor Company’s leadership style is closely linked to the company’s culture. Ford Motor Company’s corporate culture is based on employee empowerment who are committed to the culture. Due to this, Ford Motor Company’s leadership style and culture's ultimate role is to build a learning organization that will promote long-term success.

References

Gist, M. (2020, October 16). The Leadership Style That Turned Ford Motor Company Around. Real Leaders. https://real-leaders.com/the-leadership-style-that-turned-ford-motor-company-around/

Hoffman, B. G. (2012). American icon: Alan Mulally and the fight to save Ford Motor Company. Three Rivers Press.

Keough, W. (2012). The Toyota Way to Lean Leadership: Achieving and Sustaining Excellence Through Leadership Development [review]/Liker, Jeffery K. and Gary L. Convis. Journal of Applied Christian Leadership, 6(2), 135-136.