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Published by Ameen Almohsen
Nasser's issue
Nasser's issue

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Published by: Ameen Almohsen on Apr 05, 2013
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Asleep At The Wheel

Ford Motor Company’s Exclusion of the Older Worker

Power Point to accompany Opportunities and Challenges of Workplace Diversity by Kathryn A. Cañas and Harris Sondak Prepared by Levi Baker, Kathryn A. Cañas, and Harris Sondak

” -Henry Ford .“I will build a motorcar for the great multitude.

Jacques Nasser A History of Diversity at Ford Nasser’s Diversity Crusade Nasser’s Performance Management Process (PMP) Older Workers Sue Ford for Discrimination The Age Discrimination in Employment Act Ford Settles Lawsuits and Moves On Case Conclusions Discussion Questions .Case Overview • • • • • • • • • Ford Chief Executive Officer.

He’s a compelling guy.David E. . Cole Director of Automotive Studies University of Michigan . . People have strong emotions about him one way or the other.Jacques Nasser ―He is a very polarizing figure .‖ .

• Declared Automobile Industries Man of the Year. • Worked in Ford Thailand. Venezuela. 1999 and is named CEO.Jacques Nasser Professional Achievements • Accepted position as financial analyst at age 20 with Ford Australia. increased productivity by 40%. • Returned to Ford Australia in 1990. and the Philippines. . • Held for 3 days as a political prisoner in 1985 at Argentina facilities. • Hired as Detroit’s head of operations in 1996. Argentina. cuts costs by 3 billion.

Ford employed people who represented 62 nationalities and more than 900 people with disabilities. • By 1916.‖ . thus ―making the automaker one of the first companies to hire people with disabilities and to adapt work environments to their specific needs. Ford credited with helping to create the black middle class. Ford hired many veterans with disabilities returning from World War I. • In 1919.A History of Diversity at Ford • In 1913 Ford pays the then-high wage of 5 dollars a day attracting thousands of immigrants and African Americans.

• 2000. Ford makes 30% of its new hires minorities and raises minority managers to 15%. African Americans account for 19% and Latinos 3%. It’s also good business.Nasser’s Diversity Campaign • 1999. It’s the right thing to do.‖ -Jacques Nasser . Fortune magazine rates Ford the country’s 30th best company for minorities—no other automaker makes the top 50. ―Greater inclusion of minorities is a priority for two reasons. Minorities and women constitute 47% of Ford’s total workforce. • 2001.

000 managers • Stated that managers’ bonuses hinged on diversity goals .Nasser’s Performance Management Process (PMP) • Modeled after GE and Microsoft • Used to rank Ford’s 18.

employee could be demoted or fired A B C 10 80 Split into B1 and B2. B2 employees seen as less productive 10 Low performers . B2 received fewer benefits If no improvement after two years.Nasser’s Performance Management Process (PMP) % Definition Top performers Actions Potential for advancement B1 eligible for pay increases and bonus.

Ford Motor Company • The plaintiffs consisted entirely of white males. • The plaintiffs claimed that management was attempting to eliminate older salaried workers.Older Workers Sue Two high-profile age discrimination lawsuits were brought against Ford by older workers as a result of Nasser’s PMP initiative. . • The plaintiffs claimed ―reverse discrimination‖ based on race and sex but later dropped this claim to focus on age. Siegel vs. Streeter vs. • The suit was given national recognition when it was supported by the AARP. Ford Motor Company • The plaintiffs consisted of employees of both sexes and multiple ethnicities.

” – David Murphy. Maybe they shouldn’t be a part of Ford Motor Co. by having some kind of consensus. You aren’t going to do that by pleasing everybody. Human Resources Vice-President . We know we are going to upset some people.Older Workers Sue Key quotes by Ford top executives increased the perception that Ford was discriminating against older workers: “We are in the middle of transforming one of the biggest companies in the world.

We need to change.” – Richard Parry-Jones. We need more employees who are more reflective of our consumer base.Older Workers Sue Key quotes by Ford top executives increased the perception that Ford was discriminating against older workers: “We are trapped in a mono-cultural environment that is dominated by old white males. Product Development and Quality Vice-President .

. or privileges of employment. or to reduce the wage rate of any employee in order to comply with this Act. terms. 3. 2. US Department of Labor The main argument in the lawsuits against Ford was that they violated the Age Discrimination in Employment Act: to fail to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation. segregate. because of such individual’s age. to limit.The Age Discrimination in Employment Act It shall be unlawful for an employer: 1. conditions. or classify its employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee. because of such individual’s age.

Ford Settles and Moves On • Pays $10.‖ ―achievers.‖ and ―improvement needed‖ instead of 10/80/10 .5 million to settle the two suits • Drops the PMP moniker • Ranks employees as ―top achievers.

• DiversityInc’s June/July 2004 issue ranked Ford the number three company in the U.Ford Settles and Moves On Recent Accomplishments • The Gay & Lesbian Alliance Against Defamation awarded Ford the ―Fairness‖ award. .S. for diversity.

Conclusions • Ford maintains that diversity is a ―distinct advantage‖ and that diversity is one of their ―top corporate priorities. . • The Ford case provides an example of top management attempting to promote corporate diversity but failing in the process by discriminating against older workers.‖ • With such serious claims of diversity comes the responsibility of valuing the knowledge and experience of the older worker.

How can Ford restore its good reputation for promoting diversity? 3.Discussion Questions 1. What were the problems with Ford’s PMP evaluation system? 4. What mistakes did Jacques Nasser make in developing his plan to diversify Ford’s workforce? 2. What changes should be made in creating a new evaluation system? .

Discussion Questions 5. What should management do when promoting one dimension of diversity seems to require diminishing another? 7. How should businesses adapt to the aging of the US workforce? 8. How did Ford appear to violate the ADEA? 6. How much does it matter that top management be as diverse as the workforce? .

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