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In developing a comprehensive understanding of Ford Motor Company’s performance management strategies, it’s necessary to…
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While there have been more exact and specific formulations of performance management, most notably by Dr. Aubrey Daniels who in the 1970s identified a technology specifically designed to manage behavior and results, for the consideration of performance management in this context, the essay will advance with the broader contextual interpretation.
Recently Ford Motor Company altered an aspect of their performance management system to better evaluate employee performance. The past system had been the target of a number of law suits over complaints that it was skewed towards age discrimination. The new performance management system eliminates quotas from the performance rating system and updates the appraisal process through a newly updated system. This shift was the first major shift in performance management at Ford Motor Company since 2000 when the last system was instituted in an effort to increase bottom-line results and to alter the long stagnant corporate climate at Ford. (Karash 2005)
The appraisal process at Ford Motor Company is based on a grading system much like one might experience in a university or high school scholastic environment. The company’s performance management system grades managers at various company levels with an A, B, or C performance rating. The grade is based on a complicated rubric that includes a number of internal factors, but is also highly contingent on productivity measures. If the employee or manager is rated at a C level then this eliminates their bonus for that year. If the employee or manager spends more than one year at the C grade scale and receives this performance rating for the second year then they are potentially demoted or in certain circumstances released. Over 18,000 managers are rated through this grading system. While the average number of managers receiving the C rating was intended to be at 10% for a number of years, recent reports indicate that the performance management system ... Read More
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