Many firms consider HRM as a standalone process that is separate from the business strategies. However, more firms are realizing that proper HRM strategies can be a strategic advantage for the firm. The reason is the increasing homogeneity in the business world. As a result, employees are the main differentiating factor between firms. The paper reviews how Ford Motor Company can integrate HRM and business strategies to create a competitive advantage.
Ford as a firm has a fairly advanced HRM policy. The business strategy of Ford relies on the vision of creating a lean enterprise that is able to better the lives of people around the world through mobility and automotive technology. The HR strategy from Ford needs to align with this business strategy. Essentially, the HR strategy needs to be lean, inclusive and streamlined to make it as effective as possible. As a large multinational, Ford Motor Company Operates in different regions. The American Region is the headquarters while the next largest is the European Region. One of the easiest ways of aligning business strategy and HR practices is by shifting to talent management. Talent management refers to an organization’s strategy of identifying, nurturing, hiring, training and retaining the most talented employees in the field. While it is costly, it enables the firm to get the best employees possible. Since employees are a competitive advantage, it gives the firm a competitive advantage over rivals in the automotive industry.
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In the HR department, the job that is most appealing is the regional HR manager. The role is to ensure that the right employees are hired from a particular region. The reason why this is attractive is that regional managers are in the best position to create an effective talent management program. Talent management goes beyond simply hiring due to vacant positions (Thunnissen, 2016) . Instead, it involves looking at the strategic HR needs in th e future and grooming the candidates several months before they join the firm. Another policy that can be developed is onboarding employees when they are hired in the firm. Onboarding involves ensuring that the new hires are trained and acquainted with the corporate values of the firm (Caldwell & Peters, 2018) . This makes it easier for the HR department to create a conducive organizational culture. It also improves employee engagement and socialization which increase job satisfaction, motivation, and retention.
Another important business strategy is encouraging diversity. There are three ways that Ford Motor Company can increase diversity. The first is by providing employees with cultural sensitivity training. This helps eliminate unconscious biases which can result in a willingness to hire more people from diverse cultures. The second approach is by creating a policy where a proportion of the jobs in the firm are allocated to different minority groups (Barak, 2016) . By creating a policy, it can ensure that more minorities are hires in the firm. The third approach is by aligning corporate social responsibility programs with helping minorities, particularly those from low socioeconomic backgrounds. This encourages diversity in the firm.
Ford Motor Company has done a good job of developing an effective HR system. However, it can integrate the HRM approach with the business strategies by focusing on improving diversity in the workplace, talent management, and an integrative employee onboarding program. The implementation of these strategies will ensure that the personnel will be a competitive advantage for Ford Motor Company.
References
Barak, M. E. (2016). Managing Diversity: Toward a Globally Inclusive Workplace. Thousand Oaks, California: SAGE Publications.
Caldwell, C., & Peters, R. (2018). New employee onboarding – psychological contracts and ethical perspectives. Journal of Management Development, 37 (1), 27-39. Retrieved from https://doi.org/10.1108/JMD-10-2016-0202
Thunnissen, M. (2016). Talent management: For what, how and how well? An empirical exploration of talent management in practice. Employee Relations, 38 (1), 57-72.
