Through this integration, HR policies must "cohere and be accepted across all company policy areas and across all hierarchies in the company". These same HR policies had to be turned into practices that were used by both managers and employees as part of their everyday work at Ford (Berman, E. M., & West, J. P., 1995).
The management role at Ford has changed tremendously from being a mostly personnel function, consisting primarily of a lot of paper pushing, hiring and firing, to being totally responsible for the maximization of "human capital effectiveness". Which primarily creates a better-trained, more flexible workforce that will add more to the bottom line. Peoples' Bank went through some organizational restructuring in order to stay competitive in the market. As a result of the changes that were made in Ford's system, HR Management had to do research and analysis in order to scan the new environment to see what types of employees would be needed with the "new strategy's skill and organizational requirements. This was a use of HR's information management skills, which was followed by HR's integration and change skills to manage the organizational interfaces, assess the organizations skills (or the current values of the banks human resource investment), set priorities, anticipate the future, and facilitate the changes. This is an excellent example of HR Management's role being at every level of the strategic planning process (Clinton, R. J., Williamson, S., & Bethke, A. L, 1994).
The sum of the environmental factors that facilitated the actions and changes in each of the organizations was as follows: The rapid rate of business change; high uncertainty; rising costs; increasing competitive pressures on the bottom line; the legal environment; increasing demands for new skills through education and retraining; increasing multinational competition and collaborations; and all the rapid technological changes (which is a huge factor). All the new technology causes increased competition by providing vast amounts of market data. This data allows companies to quickly collect, analyze, and interpret changing and emerging customer needs. This affects the rate of business change.
Technology at Ford also changes the way the work is done; this increases demands for new skills through education and retraining. As a result the ability to access and share information creates a growing need for less hierarchy and more employee empowerment. A common theme running through all these environmental factors is a cost control orientation, which means that organizations (as it relates to remaining profitable and competitive) have a concentrated focus on containing costs. This can most often be done through planning and planning can be done through (first) environmental scanning. Another environmental factor is reengineering, which is also called process innovation, core process redesign, or business process reengineering. Reengineering is directed at achieving large cost savings by eliminating unneeded activities and consolidating work. This was done at Ford, as they eliminated several middle management jobs/positions, and replaced those jobs with better-qualified individuals on a local wage policy. The type of service desired by customers is also a major