...the organization, therefore good leadership is necessary. There are different leadership styles; a particular leader that will be discussed is Alan Mulally a CEO of Ford Motor. Alan faced many challenges and he impacted his business style on a corporate level as well as socially. Alan Mulally is one of greatest leaders, who managed business challenges effectively and because of his effectiveness he brought high profits to the organization. Mulally was an engineer in 1969. He handled various projects that were in relation to airplanes. One of Mulally’s greatest achievements was introducing the concept of “all digital” flight deck in the commercialized aircraft field. By 1993 Alan Mulally had had drastically climbed the ladder and became Vice President of Boeing. Alan Mulally was known to the commercial airline group as ‘Vice President of Engineering” (Biography: Alan Mulally 2011) Currently, Alan Mulally is the CEO and President of Ford Motors. Mulally joined Ford Motors in 2006, during this time period Ford Motors was struggling to stay afloat due to the recession that began in the late 2000s. Alan Mulally joined Ford Motors without prior sales experience. Because of Mulally’s lack of sales experience, it was a very a challenging experience for him. Alan Mulally’s objective was to increase Ford Motors profitability. Alan Mulally decided to take out...
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...Alan Mulally, CEO, Ford Motor Company Elizabeth Haskins Strayer University Instructor: Dr. Yohannes Abate Leadership and Organizational Behavior – BUS 520010VA016 August 7, 2011 Abstract This case focuses on the challenges Alan Mulally (Mulally); CEO of Ford Motor Company faces to implement a new beginning for Ford. Upon Mulally’s arrival, Ford was on the verge of a financial collapse, reporting a $12.6 billion dollar loss in 2006 and a $2.7 billion dollar loss in 2007. Bill Ford hired Mulally to lead the company as he felt that only an outsider could take the extreme steps needed to save the company from financial failure. In a strategic move to ensure Ford maintained its independence and sensing a recession as well as not to be forced to accept a government loan , Mulally borrowed $23 billion against Ford’s assets. This was a strategic move in the hopes that Ford would maintain its independence. This case study will highlight the challenges faced by Mulally, his management and leadership style and what changes were implemented into the organizations culture to ensure its success and place in the car industry. Introduction Mulally moved to Ford in September 2006. When starting at Ford, he had not engineered, designed or built any cars. He came from the defense industry. Previously, he had been employed with Boeing since 1969. At Boeing, he held a number of engineering and program management positions, making contributions to the Boeing 727...
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...developing a mission of values to operate their company. Company policies or guidelines are set from the company's mission or values “Successful organizational performance relies on the proper behavior from managers and employees.” (Vitez) Effective leadership can transform an employee from a worker completing tasks to a valuable asset to the team by instilling an ownership mindset. Employees with this belief they often find ways to improve their attitude and productivity. Leadership skills can also be used to get managers and employees on the same page with the same goal and to correct poor business practices. 2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Alan Mulally has a combination of a relationship behavior style and a task behavior style. In the case it is stated, “Mulally’s leadership has resulted in Ford making some strategic moves.” (Hellriegel, & Slocum page 543) His skills and style helped Ford to move ahead in the industry during an economic recession. According to Lewis Booth, chief financial officer at Ford, “Alan’s style is pretty relentless.” He says,” If this is the reality, what are we going to do about it?” (Taylor). He interviewed dozens of employees, analysts, and consultants. He developed a point of view about the auto business that now frames all his decisions. He created plastic cards with four goals on one side ("Expected...
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...This paper is about Alan Roger Mulally (born August 4, 1945), who is an American engineer and businessman. Mulally is currently the President and Chief Executive Officer of the Ford Motor Company. Ford, which had been struggling during the late-2000s recession, returned to profitability under Mulally and was the only major car manufacturer to avoid government-sponsored bankruptcy. Mulally moved to Ford in 2006. He had worked at Boeing since 1969. He had been chief engineer for development of the 777, and was later Vice President of Engineering for commercial aircraft. Mulally had no sales experience, and he was not a “Detroit car man,” much less a car man at all. He sold his Lexus after moving to Dearborn. What is most impressive is Mulally’s “results oriented” leadership style. His management is crisp and authoritative, although he defers to the firm’s design experts on the minutiae of the product lines. But on the big questions of the company’s past mistakes and where it’s headed, Mulally made key decisions that placed Ford in good stead. When Mulally testified before Congress in December 2008, along with GM’s Rick Wagoner and Chrysler’s Robert Nardelli, he announced that Ford would be able to survive the recession without a bailout. The Role of Leadership and How It Can Impact Organizational Performance Leadership is an art, and like other arts, requires discipline, good techniques and self-expression. There are some basic rules or formulas connected with an art...
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...Running Head: Alan Mulally, CEO, Ford Motor Company Alan Mulally, CEO, Ford Motor Company BUS 520 August 08, 2011 1. Discuss the role of leadership and how it can impact organizational performance. The role of leadership is the process of developing ideas and a vision, along with living by values that support those ideas and vision, and influencing others to embrace them in their own behaviors and making hard decisions about human and other resources” (Hellriegel & Slocum, 2010, p.25). Leadership is also accomplishing something through others that would have never happen if a leader was not involved. In order for leadership to impact an organization there would have to be ideas and values established that will energize others to follow ones lead. It is most essential that employees within organization are able to confine with the vision, ideas, and values of an organization’s leadership. Therefore, if the employees are not firm believers in an organization’s leadership, they will not follow the vision and values of the leadership within that organization, which will ultimately lead its failure. In order for organization to remain or become successful, their employees should not only believe in its vision, they should believe in its leadership well as. There are several ways that leadership can impact organizational performance, one would have to say that the most important element is when an organization can adopt a corporate...
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...FORD’S CEO ALAN MULALLY A NEW APPROACH TO DECISION MAKING 1.0 According to Rowe and Mason (1987), each decision style elicits specific traits and/or preferences. For example, the following decision making styles of analytical, behavioral, conceptual, and directive, respectively prefer specific facts, accurate and complete data, broad coverage of many options, and limited data that are easily understood (Rowe & Mason, 1987). Further, Rowe and Mason (1987) believe that style descriptors should be able to describe an individual’s mental predisposition, cognitive process, and problem solving ability. They also deem that the style descriptors can be contextually explicit—describing the environment in which the decision is being made (Rowe and Mason, 1987). These theorists describe four elements of an individual’s decision style. The four elements are: • Perception and reception to stimuli, • Capacity to handle information and to reach a meaningful conclusion, • Intuition or creativity to develop alternatives, • Dexterity to make a decision (Rowe and Mason, 1987). Rowe and Mason’s model provides general descriptions of each style through specific categories such as organizational fit, problem orientation, level of tolerance for ambiguity, technical concern, leadership, and major criticism. The general descriptions of each decision style are as follows: Analytical Style This style is characterized by a problem solving and intellectual orientation. These...
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...Alan Mulally, CEO, Ford Motor Company Steve Rhew Dr. Aiynak Finch BUS 520 Leadership and Organization Behavior August 7, 2011 1. Discuss the role of leadership and how it can impact organizational performance. Army Doctrine defines leadership as “The process of influencing people by providing purpose, direction, and motivation, while operating to accomplish the mission and improve the organization” (Department of the Army, 2007). This definition tells us several key elements of leadership that affect the organization at some point. In order to get the organization to function and employees to perform, there has to be a purpose, a direction of where the organization wants to go, and the employees need to be motivated to do what they are hired to do. Leaders set the tone of the organization and provide that purpose and direction of what they desire for the organization. To take it a step further, leaders define the goals which help provide the direction to the desired end result. Leaders possess several key traits necessary to accomplish goals. Leaders lead by example. The example the leader displays affects the behavior of those in the organization. You can normally determine the type of leadership that exists by the way the organization operates. Leaders also provide effective communication in order to ensure their ideas are understood and executed. Leaders are responsible for the culture that exists in the organization. Leaders provide encouragement to employees...
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...Leadership and Organizational Behavior Alan Mulally, CEO, Ford Motor Company Professor: Dr Patrick Sanderson Submitted by: John-Miguel Onkony Course: Bus 520 Strayer University Fall Quarter 2011 1. Discuss the role of leadership and how it can impact organizational performance. Leadership is defined as the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources. The role of a leader is very vital in a company. The ability of organizations to achieve their goals depends on the degree to which leadership abilities and styles enable managers and team leaders to plan, organize, control, influence, and act effectively. The leader must learn how to handle the behaviors of employees, and they also have to be very familiar with the company and its competitors and customers. The leader helps determine and set the tone for the company successes and failures. Business owners will set the leadership tone for their organization by developing...
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...Assignment #3 Case: “Alan Mulally, CEO, Ford Motor Company” Quinisha Story Dr. Edward Olanrewaju BUS 520: Leadership and Organizational Behavior Sunday November 14, 2010 1. Discuss the role of leadership and how it can impact organizational performance. Leadership is defined as the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources. The role of a leader is very vital in a company. The ability of organizations to achieve their goals depends on the degree to which leadership abilities and styles enable managers and team leaders to plan, organize, control, influence, and act effectively. The leader must learn and handle the behaviors of employees, very knowledgeable of the company and its competitors and customers. The leader helps determine and set the tone for the company successes and failures. 2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. The leadership style that Alan displays at Ford is the behavioral model of leadership which focuses on what leaders actually do and how they do it. He uses the selling style, the leader provides direction, encourages two-way communication, and helps build confidence and motivation on the part of the follower. He also models the Facilitate...
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...characteristics to employees, he/she is able to gain the trust and loyalty of the employees. Employees who feel that they are valued, respected, and trusted feel happy about the organization and are more likely to put forth maximum opportunity in reaching for the goals. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Mulally’s leadership style is selling. “In using a selling style, the leader provides direction, encourages two-way communication, and helps build confidence and motivation on the part of the follower” (Hellriegel & Slocum, 2010, p.306). Upon joining Ford, Mulally was able to identify specific goals for the company, implement a process to work toward the goals, and install managements system to ensure that the goals are met. As communication is key and Mulally insists that everyone knows the plan, its status, and where special attention is needed. To let everyone know what his plans for the company are, he created plastic cards with four goals on one side and a revised definition of the company on the other. To ensure involvement by...
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...Alan Mulally, CEO, Ford Motor Company Emmanuel C. Njoku Dr Stacey McCroskey Bus 520 11/11/10 Introduction This paper is a case study on “ Allan Mullally CEO, Ford Motor Company” which discusses, firstly the role of leadership and how it can impact organizational performance. Secondly Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Thirdly how goal setting helped Ford improve its performance. Fourthly, asses Mulally on each element in communication openness including message transmission, trust, agendas and goals. Fiftly, evaluate the effectiveness of Mulally’s leadership style and recommend whether he should continue with this style, or use a different style. Discuss the role of leadership and how it can impact organizational performance. Hellriegel, D and Slocum, J. W ( 2011 ) Organizational Behavior. Legitimate power is an individual’s ability to influence others behaviors because of the person’s formal position in the organization. Mulally decided to borrow $23 billion against Ford’s assets in 2006 . Mulally is moving to integrate the company globally, in 2010 Ford will be selling small cars in the United States that were developed in Europe. Hellriegel, D and Slocum, J. W ( 2011 ) Organizational Behavior. Expert power is an individual’s ability to influence other’s behaviors because of recognized competencies, talents, or specialized knowledge. For example Mulally...
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...Discuss the role of leadership and how it can impact organizational performance Leadership is commonly defined as “establishing a clear vision, communicating the vision with others and resolving the conflicts between various individuals who are responsible for completing the company’s vision” (Kelly, 2009). The most effective leaders are those who can competently organize the cooperation and assistance of all members of the company to accomplish goals and objectives. The constantly changing wants and needs of the consumer have made it necessary for leaders to create strong organizational cultures so that companies can continue to expand into the future. According to Hellriegel & Slocum (2011), Alan Mulally’s leadership has resulted in Ford making some strategic moves. His skills and style has helped Ford to move ahead in the industry during the economic recession. Ferrell, Hirt & Ferrell (2009) argue that an effective leader is one that is task-relevant and most successful when they adapt their leadership style to the individual or group they are attempting to lead or influence. By understanding the ins and outs of how things should be run within the company, a leader can quickly and efficiently adapt their leadership styles to the individual or group situation that requires attention. According to Ferrell, Hirt & Ferrell (2009), it is widely believed that leadership creates the vital link between organizational effectiveness and people’s performance at an organizational...
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...to experience some down-turns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. Research was conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the strategy was executed will be discussed. Also, rationale will be provided for other strategies that could have been used in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his amazing contributions. The "Forbes" (2014) website notes that from March 2001 to September 2006, Mr. Mulally served as Executive Vice President of the Boeing Company and President and Chief Executive Officer of Boeing Commercial Airplanes, Inc. Ford was no longer a leader within the automobile industry and made the decision to hire Mulally in order to turn them around. According to Kaipa and Kriger...
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...6 Leadership Tips From Ford CEO Alan Mulally By Ted Reed April 3, 2012 6:58 AM DETROIT (TheStreet) -- Let's just call it "Alan being Alan." Ford's F ebullient CEO, Alan Mulally, is a master of the warm-hearted gesture, of taking a little extra time to make people feel important, enthusiastic and ready to follow him anywhere. At Ford, which he joined in 2006, that course has involved a journey from an economically distressed company, habitually losing money, with debt rated seven levels below investment grade and every asset mortgaged, to emergence in 2011 as a profitable, glowing symbol of the revival of American manufacturing. | Ford CEO, Alan Mulally | In the case of Oakland A's baseball player and potential Hall of Famer Manny Ramirez, the widely used phrase "Manny being Manny" refers to a legion of incidents manifesting relentless obliviousness to his surroundings. In the case of Oakland, Calif., native and celebrity CEO Mulally, the phrase "Alan being Alan" connotes a string of anecdotes in which he engages with people, not only those who are members of the world's wealthy leadership class, but also with everybody else he encounters as he glides through life, answering questions with a smile and a "you betcha." Many of those he encounters come away with stories. Rebecca Lindland, director of research at HIS Global Insight, said that several years ago in a conversation with Mulally, she mentioned that her mother was pleased that Ford was bringing cars...
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...Alan Malally In less than one week, Alan Mulally will resign as CEO of Ford Motor Company after an 8-year run packed with achievements and an innovation track record that should be the envy of every executive today. When Mulally steps down, Detroit will lose a true innovation leader. Mulally’s turnaround of Ford will likely be studied by business students for years to come as an artful combination of needed financial belt-tightening, plus a cultural change that took the car and truck maker from the brink of bankruptcy to the forefront of growth in the U.S. auto industry. The cultural shifts Mulally put in place impacted how Ford’s teams were structured, how collaboration was fostered, and how innovation itself ultimately came to flourish under his guidance. From my perspective, Mulally joins top innovation CEOs AG Lafley (P&G), Jeff Bezos (Amazon), Steve Jobs (Apple) and Howard Schultz (Starbucks) as the five most significant corporate leaders of the last decade. Ford Motor Company President and CEO Alan Mulally. (AP Photo/Paul Sancya) Ford Motor Company President and CEO Alan Mulally. (AP Photo/Paul Sancya) Ford In Tough Shape Long Before the Great Recession When Mulally took over as CEO in 2006, Ford was in tough shape. It had lost a whopping 25% of its market share since 1990. The company held a huge portfolio of brands including Jaguar, Land Rover, Aston Martin, and Volvo. But none of these brands was faring well, and each required major capital infusions...
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