Professional Documents
Culture Documents
Power Point to accompany Opportunities and Challenges of Workplace Diversity by Kathryn A. Caas and Harris Sondak Prepared by Levi Baker, Kathryn A. Caas, and Harris Sondak
Case Overview
Ford Chief Executive Officer, Jacques Nasser A History of Diversity at Ford Nassers Diversity Crusade Nassers 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
Jacques Nasser
He is a very polarizing figure . . . People have strong emotions about him one way or the other. Hes a compelling guy.
- David E. Cole Director of Automotive Studies University of Michigan
Jacques Nasser
Professional Achievements
Accepted position as financial analyst at age 20 with Ford Australia. Worked in Ford Thailand, Venezuela, Argentina, and the Philippines. Held for 3 days as a political prisoner in 1985 at Argentina facilities. Returned to Ford Australia in 1990; increased productivity by 40%. Hired as Detroits head of operations in 1996; cuts costs by 3 billion. Declared Automobile Industries Man of the Year, 1999 and is named CEO.
In 1913 Ford pays the then-high wage of 5 dollars a day attracting thousands of immigrants and African Americans; Ford credited with helping to create the black middle class. By 1916, Ford employed people who represented 62 nationalities and more than 900 people with disabilities. In 1919, Ford hired many veterans with disabilities returning from World War I, thus making the automaker one of the first companies to hire people with disabilities and to adapt work environments to their specific needs.
Actions
Potential for advancement B1 eligible for pay increases and bonus. B2 received fewer benefits If no improvement after two years, employee could be demoted or fired
A B C
10 80
10
Low performers
Streeter vs. Ford Motor Company The plaintiffs consisted entirely of white males. The plaintiffs claimed reverse discrimination based on race and sex but later dropped this claim to focus on age. Siegel vs. Ford Motor Company The plaintiffs consisted of employees of both sexes and multiple ethnicities. The suit was given national recognition when it was supported by the AARP. The plaintiffs claimed that management was attempting to eliminate older salaried workers.
We are in the middle of transforming one of the biggest companies in the world. You arent going to do that by pleasing everybody, by having some kind of consensus. We know we are going to upset some people. Maybe they shouldnt be a part of Ford Motor Co.
David Murphy, Human Resources Vice-President
We are trapped in a mono-cultural environment that is dominated by old white males. We need to change. We need more employees who are more reflective of our consumer base.
Richard Parry-Jones, Product Development and Quality Vice-President
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, terms, conditions, or privileges of employment, because of such individuals age; to limit, segregate, 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 individuals age; or to reduce the wage rate of any employee in order to comply with this Act.
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The Gay & Lesbian Alliance Against Defamation awarded Ford the Fairness award. DiversityIncs June/July 2004 issue ranked Ford the number three company in the U.S. for diversity.
Conclusions
Ford maintains that diversity is a distinct advantage and that diversity is one of their top corporate priorities. With such serious claims of diversity comes the responsibility of valuing the knowledge and experience of the older worker. The Ford case provides an example of top management attempting to promote corporate diversity but failing in the process by discriminating against older workers.
Discussion Questions
1. What mistakes did Jacques Nasser make in developing his plan to diversify Fords workforce? 2. How can Ford restore its good reputation for promoting diversity? 3. What were the problems with Fords PMP evaluation system?
Discussion Questions
5. How did Ford appear to violate the ADEA?
6. 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 much does it matter that top management be as diverse as the workforce?