Ford Motor Company

When one thinks of the perfect job they consider a lifelong career where they can achieve loyalty and commitment to a company, and in hopes of receiving the same back from their employer. In some cases this is not always the outcome; today many employees are experiencing betrayal from companies they had once devoted their lives too, but these companies concerns are not their employees but the profit that they are making from these employees. The Ford Motor Company, one of the largest car manufacturers in the world is currently in need of recreating their business structure, which ultimately results in a company downsize. The company has recently made the decision to decrease their workforce between 25,000 to 30,000, this decision is largely due to the $5.8 billion third-quarter loss this year (Bush). Though the company hopes to increase productivity and profit by the downsize, their will be tremendous effects on those who are forced to leave their careers, and also those who are lucky enough to stay with the company.

On June 16, 1903, an intelligent man named Henry Ford and 11 associates opened the Ford Motor Company with $28,000 in cash, like most companies Ford started out modest, but soon rose to be the most successful manufacturer in the country. One thing that separated Ford from all other manufacturers was the assembly line. The assembly line allowed Ford to produce cars faster and more efficiently that many other companies. By the time the 50’s had reached, Ford had adapted to fulfilling its customers needs, and had increased the number of stockholders to 350,000. Soon after, the Ford Company made the decision to go global, which was a great success. Today the company has grown to consist of a number of brands that are formatted to meet the needs of the constantly changing consumer (History).

Though the company had continuous success for many years, last year started a downfall for the company. In October of last year the CEO of Ford, Bill Ford Jr., announced that the company would need a dramatic change in order to stay alive. The company reported a $1.3 billion pretax loss in 2005 compared to a $609 million loss in 2004 (Hoffman). Recently the company reported a $5.8 billion third-quarter loss, which has been the biggest in the past 14 years (Bush). Due to these enormous losses the company plans to largely reduce its company’s employment, in hopes of strengthening the company as a whole and increasing profitability (Hoffman).

When a company is coping with economic pressures, the proper solution seems to be downsizing, which can have a positive effect on the company (Downsizing). As a result of downsizing, a company may experience an increase in efficiency and productivity, which leads to better sales. As the company reduces their workforce they are reducing labor cost, which in return allows funds to be placed in areas where they are mostly needed. Not only does it have an effect on these things, but it may also strengthen the company as a whole when done properly (Dealing). Though these characteristics seem to be a positive for the company, they cause problems for those who will lose their jobs due to downsizing.

A career to most people is what shapes there lives and plays a major role in life decisions. Not only this, but it also provides a steady income, self-esteem, and a way to schedule one’s life. When one is looking for a job they are generally in search of those that provide things such as good benefits and retirement plans. After obtaining this job, one would plan to stay with the company as long as possible to grow and be successful within the company. These important aspects can be crushed when a company decides to downsize, especially for those that have been with a company for a number of years and are already established. Employment is what keeps one’s lives in order, and most importantly an income. The employees that will be losing their careers as a result of Ford, are facing a case of betrayal. Although it does seem as if they are being betrayed, Ford has taken initiative to display loyalty to those employees.

An important trait that needs to be shared between both the employer and the employee is loyalty, without loyalty an employee would not be as dedicated to there career as they should be. Loyalty should be the basis of the relationship between the employer and employee. As long as the loyalty is equally shared, it should always be maintained under any circumstance. For example, with Ford’s decision to downsize they have offered early retirement packages to those that will be losing their jobs, which is a sign of loyalty to their employee (Bush). Even though downsizing is generally not good for the employee losing their job, Ford is at least trying to be loyal to their fellow employees, rather than leaving them with absolutely nothing.

Not only does downsizing have a negative effect on those