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Q No.1: I). Classical theory: This viewpoint emphasizes efficiently managing work and organizations.

It includes three management approaches scientific, administrative and bureaucratic. This viewpoint is called classical as it includes early works and contributions comprising the core of the management field. Ford applies priorities of costs cutting and raising quality. In mid of 1980s they also reduced hourly workforce and shut down eight of its plants. The remaining plants were upgraded technologically to increase efficiency. Computerized inventory control system was part of changes. Ford tied its efficiency and cut the costs for better quality search. The adopted the view that high quality means low costs. They save $5 billion with these efforts. They change the design and told designers to design cars on design they like to drive. Then their sale increased very well. II). Behavioral theory: In behavioral theory the emphasizes on factors that effects human behaviour. The strategies should favour the employees. Ford launched an employee involvement program. This program made possible the decisions from lower level including the assembly line. Lower level also has rights to suggest if they see any problem. Ford emphasizes teamwork and uses the team concept to involve individuals from various areas such as design, engineering and manufacturing in the development of new models. III). Quantitative theory: This theory focused on mathematics statistics and information aids supporting managerial decisions making and organizational effectiveness. In March 2009 Ford motor co. began restructuring to cut its debt. It began giving cash and stock to pay off its $10.4 billion debt. Ford would like to capture 30% of the North American car and truck market, compared with its present 26% market share. The company would also like to increase its 12% of the European market to 15%. Q No.2. System theory: System theory is based on viewing organizations as systems. Teamwork is also part of this theory. A system is a set of interrelated parts working as a whole in pursuit of common goals like in Ford employee involvement program. As one part of the change ford eliminated separate North American and European engineering operations in favour of moving 15000 employees into five worldwide product development centers. Under this arrangement instead of developing separate escort size cars for sale in Europe, the United States and Australia, the European centre would develop a basic design that could be modified for use in various markets. The other centers would develop a basic design that could be modified for use in various markets. At the introduction of Edsel its sale in 1958 was only about 35000 and it was short of conservative target. With the collapse of stock market the purchase of medium size cars that year reduced. The ist Edsel prone to oil leaks, mysterious rattles, faulty breaks and starting difficulty problems.


ford hoped to be much more efficient.At present the major challenge facing Ford is to sell its products in more markets. After facing early loses they apply system theory currently and now much developed. As the century turned. 2 .