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Chimney Breaking Previously, Ford was vertically organized by function.

The vertical organizations had become so narrow and self-contained that they were referred to as chimneys of power. Each function had its own goals and perspectives, and each tended to view the others as part of any problem rather than as part of its solution. Chimney breaking is known as breaking the vertical structures into a horizontal one, so that each functional department can work with other departments horizontally and achieve better working relationships between each other. Executive Workshops Before adopting the chimney breaking, the managers need to perceive the problems of its current structure through engaging the DPO executives in executive workshops. Each functional discipline was asked to identify the positive and negative impacts of the other functional departments on its ability to fulfil its role. The comments are then passed to the related function to analyse its feedback and give solutions to respond to the identified problems. Executive workshops have boosted the motivation of employees as they feel like they are part of the company since their voices can be listened by the senior Ford executive and they have a better understanding of how their role is influencing on each other, this paved them the way to cooperate with each other and work towards a common goal.

The Blue Ribbon Committee The Blue Ribbon Committee has set a good example of chimney breaking. As the responses indicate that Ford needed faster, higher quality communications and more decentralized decision making, Frey established a Blue Ribbon Committee to address these concerns. The Blue Ribbon Committee was created in early 1980, it was responsible in delayering and downsizing the engineering ranks. It took two years to formulate recommendations. (1) a reduction from five to three layers within the engineering hierarchy, and (2) identification of over 200 middle managers whose positions could be eliminated.

Transformation: never complete Ford has undergone a significant changing process since 1980 and there has been a radical change in the companys thinking regarding the mangers role. Yet, the transformation of changing process will never complete. To survive through the hard times, Ford would need to internalize the changing attitude as a way of life and has a notion that there is never an end point to reach the best quality at lowest cost or best products for our customers. Therefore, Ford must always stay self-disciplined and alert of changing consumer tastes and trends and careful monitoring of competition.

Hawthorne Experiments Elton Mayo Early management thinkers suggests effective management should be engineering tighter control through making people more like machine parts. However, Elton Mayo saw engineering as a part of the problem rather than the solution. Mayo found that workers acted according to sentiments and emotion. He felt that if you treated the worker with respect and tried to meet their needs then they would be a better worker for you and their productivity would increase. In the case of Ford, before the transformation process, the lack of attention to human relationships was a major flaw in the hierarchical structure as employees have no right to voice their opinions to the top levels but do what the managers said. However, Ford has survived by changing its management style. The key solution was to getting the workers more involved in the management. By launching the employee involvement program and executive workshops, employees feel like they are treated with respect as they can voice their opinion to the managers and play a role in decision-making.