Ford encountered different challenges during the leadership of Ford III. Therefore the new CEO Mulally aimed to improve the company’s performance by identifying the root causes of the problems faced by the company. Part of his strategies focused on Ford’s culture. He transformed organizational culture thus positively influencing the values and norms of the organization. Following the previous downfall with the CEO earlier the new, CEO was willing to identify major problems that affected the company. Besides, the identified significant issues regarding various aspects such as the relationship of the employees, middle level, managers and their managers. Indeed a problem was noted by the reaction indicated after questioning of the employees.

One of the core problems identified by Mulally was a weak relationship between the employees, and the managers was poor. For instance,  the senior managers tend to protect their positions at the expense of delivering the required roles. They were not willing to expose their problems to middle-level managers. Instead, everyone was defending his or her position at the expense of performance of the company. Other issues included poor sales of vehicles at different divisions. Lack of accountability and inability or the managers to adopt the required recording and communication skills had also put the company in an unfavorable position regarding performance.

Apart, from organizational problems caused by the middle, level managers, there was a significant problem with the outgoing CEO. Ford III admitted that he lacked the required, skills in managing the company. Therefore,  he can be attributed to the major problems noted in the five years when he was heading the company. The value and norms of the company were dysfunctional, and this brought forward the issue of mismanagement.  Therefore, one of the goals of Mulally was to fix organizational culture and other practices that contributed to poor performance.

The issues of ranking and managerial positions could have occurred as a  result of poor leadership that was conducted by Ford III. Besides, the problems could be attributed to other factors such as lack of adequate training lack of experience and other factors such as those affecting organizational cultures. The issue of sales on different vehicle divisions could have occurred as a result of inadequate marketing strategies and reduced investment in human resource management. The other problem noted was a poor relation among the managers. The issue could have arisen as a  result of poor communication and lack of positive working culture.

Some of the solutions that could address the problem include establishing the new methods of providing the right working culture for both employees and the managers. Other aspects such as sales such as decreased sales could be addressed. Encouraging an open mindset is crucial to ensure that the managers provide the right information as required especially those regarding the cost incurred to build each vehicle.

The organization should encourage a culture that allows the managers too our ideas and concerns of issues and problems affecting them.  Creating valid and norms would help handwork and accountability. The strategies would similarly address other issues. Improved decision making and communication is crucial in adopting the new policies and the unique cultural norms in the organization.

Ford’s problem demonstrates significant issues that arise from poor organizational culture and inability to adopt the required corporate behaviors. Therefore, the new management played a crucial role in establishing new strategies that targeted in reviewing the values and norms of the company. Furthermore, communication is essential for the success of the company.

 
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