Case: “Alan Mulally, CEO, Ford Motor Company” – Discuss the impact of leadership on organizational performance. Leadership involves motivating a group towards a shared goal. Successful leaders often possess traits such as intelligence, maturity, achievement drive, and integrity. However, these traits alone may not always guarantee success for a leader.
Having superior intelligence compared to subordinates is an advantageous quality for leading a team, as the lack of knowledge among inferior workers can hinder performance. Effective leaders are motivated by accomplishing goals and transitioning to the next one, rather than relying solely on the support or motivation of their employees to achieve them. With the assortment of characteristics defining the leadership role, possessing integrity is the pivotal trait that determines a leader’s long-term success.
According to Hellriegel & Slocum (2011, p. 297), it is common for employees to struggle with trusting a leader who is hypocritical and does not uphold their own values. The level of trust and honesty within a leader has a direct impact on the way employees follow them and can influence the overall atmosphere in the workplace. Similarly, the level of integrity demonstrated by a leader is closely linked to the attitude and performance of their employees.
Traditionally, there are four leadership styles that describe the role of a leader and suit the team depending on their willingness. These styles include the telling style, where the leader gives specific directions and closely supervises; the selling style, which builds confidence by providing direction and encouraging two-way communication; the participating style, which encourages followers to share ideas and supports them in their work; and the delegating style, where the leader turns over decision-making to followers (Hellriegel & Slocum 2011 p. 306).
Before choosing a style, leaders should assess the situation. They should consider the followers’ readiness, which includes their ability to set goals and accept responsibility for them. The leader should also consider that readiness depends on the task at hand (Hellriegel & Slocum 2011 p. 305). With this in mind, leadership has the power to influence organizational performance positively or negatively.
In discussing Mulally’s leadership style at Ford Motor Company, it can be observed how his actions aligned with this style. Alan Mulally, the CEO of Ford, brought forth a new direction upon entering the company. Utilizing a selling leadership style, Mulally succeeded in gaining the trust and support of Ford’s followers. He achieved this by providing clear guidance and fostering open communication. As an example, when reviewing the product lineup, Mulally queried, “Where’s the Taurus? ”Upon discovering that the Taurus had been rebranded as the Five Hundred, Mulally swiftly responded by stating, “Well, you’ve got until tomorrow to find a vehicle to put the Taurus name on because that’s why I’m here.”
According to Hellriegel & Slocum (2011, p. 544), Mulally’s leadership was evident from his first day at Ford. Rather than demanding the Taurus name be put on a vehicle, he listened to the seniors’ reasons for renaming it, showing his values. Mulally provides clear direction and has full confidence in his plan. He believes that making money off small cars is possible and necessary since that’s where the world is heading. This openness and straightforwardness have garnered trust and support within the organization, as Manufacturing VP Joe Hinrich states that Mulally is a leader people want to follow (Hellriegel & Slocum, 2011, p. 544).
Goal setting played a crucial role in improving Ford’s performance by altering their products and differentiating them from competitors. Before joining Ford, Mulally extensively researched the company, which helped him formulate a strategy for the automotive business and establish goals that would propel Ford to the top of the industry in the future.
Mulally borrowed $23 billion in 2006 using Ford assets to avoid government loans in 2008 and 2009. He convinced Bill Ford to sell Ashton Martin, Jaguar, and Land Rover, believing that removing these distractions would allow the company to concentrate on the Ford Brand. Mulally’s primary focus for the organization was to produce high-quality small cars. Ultimately, these goals set by Mulally have differentiated Ford from competitors and contributed to performance improvement. (Hellriegel & Slocum 2011 p. 543)
Evaluate Mulally’s performance in terms of communication openness, including the transmission of messages, trust, agendas, and goals. Mulally places great importance on communication and has emphasized that everyone should be aware of the plan, its status, and areas that require special attention (Hellriegel & Slocum 2011 p. 544). Mulally extensively studied Ford Motor Company to strategically make decisions based on his research on the automotive industry. While the company’s goal was previously focused on addressing current issues rather than future opportunities, under Mulally’s leadership, goals have been established for the future of Ford.
Mulally convenes weekly meetings every Thursday to address the four profit centers and twelve functional areas. During these meetings, he encourages honesty and openness and provides feedback to the participants. This approach has fostered a more proactive problem-solving culture within the company. Mulally’s goal is to establish Ford as an industry leader, although its success remains uncertain. His leadership style, characterized by integrity, honesty, and transparency in communicating plans, has earned trust and support from the organization. It is important to assess the effectiveness of Mulally’s leadership style and determine whether he should maintain it or adopt a different approach.
Mulally’s effective leadership style is crucial for Ford Motor Company as it faced imminent financial ruin. Before joining Ford, Mulally thoroughly studied the company and knew the exact approach to take. He engaged with employees by questioning the absence of certain products, setting specific goals for them to achieve within deadlines, and communicating his expectations for propelling Ford into the future. Overall, Alan Mulally possesses the necessary vision, plan, and goal to drive the company towards success. It is imperative that Mulally maintains his leadership style, as he has consistently achieved success since 2006.
References Hellriegel, D. , & Slocum, J. W. , Jr. (2011). BUS520: Organizational behavior: 2011 custom edition (13th ed. ) (p. 297) Mason, OH: South-Western Cengage Learning. Hellriegel, D. , & Slocum, J. W. , Jr. (2011). BUS520: Organizational behavior: 2011 custom edition (13th ed. ) (pp. 305-306) Mason, OH: South-Western Cengage Learning. Hellriegel, D. , & Slocum, J. W. , Jr. (2011). BUS520: Organizational behavior: 2011 custom edition (13th ed. ) (pp. 543-544) Mason, OH: South-Western Cengage Learning.
