1 Human Resources at Ford 2004 Wheels Car of the Year 2002 Wheels Car of the Year No Boundaries

2  Australia’s largest and most established car maker  Designs Develops and Manufactures in Australia  Over 5000 employees based mainly in B/M and Geelong  Global team in excess of 325,000  Home of the award winning BA Falcon and Territory  Active in over 38 countries.  Worldwide sales of $189 billion.  Assets over $338 billion.  Celebrating 81 years in Australia this year.  The Falcon is the only car designed & built in Australia  Ford Credit – our own financial institution that delivers profit. Welcome to Ford No Boundaries

3  Over 7 km of production line  465 cars built per day (1 every 53 seconds).  18 Hectares of under roof area.  Over 65 nationalities represented throughout the plant. Ford Motor Company 2004 Wheels Car of the Year

4 No Boundaries Brands Services Our Brands and Services

5 Our Business AOC Australian Operating Committee HR IT Purchasing Product Development Manufacturing Finance FCSD Sales & Marketing Ford Credit No Boundaries

6 What is Human Resource Management? HRM – Activities necessary for staffing the organisation and sustaining a high level of employee performance HRM at Ford - When 5,500 people work together as a confident, inspired and motivated team, the rewards are great. “People are the Company’s only sustainable competitive advantage.” No Boundaries

7 HRM at Ford HR functions: HR functions: Recruitment & Induction Recruitment & Induction Line operators Line operators Apprentices Apprentices Vacation Students, Co-ops and Graduates Vacation Students, Co-ops and Graduates GSRs GSRs Training & Development Training & Development Payroll workforce (NB: NWGs) Payroll workforce (NB: NWGs) Salaried workforce Salaried workforce Organisational & Personnel Planning (O&PP) Organisational & Personnel Planning (O&PP) The PDC process The PDC process The performance management process The performance management process No Boundaries

8 HRM at Ford (cont’d) Compensation & Benefits Compensation & Benefits Role of the ER assistant Role of the ER assistant R&R R&R Corporate Citizenship Corporate Citizenship FECCS FECCS Managing Diversity Managing Diversity Maintaining a fair and equitable workplace Maintaining a fair and equitable workplace Worklife balance Worklife balance Labour relations (the HR co-ordinator) Labour relations (the HR co-ordinator) No Boundaries

9 Benefits of effective HRM Competent, highly skilled employees Competent, highly skilled employees A lean, efficient human resource base A lean, efficient human resource base A diverse workforce A diverse workforce A mutually beneficial Company/Union relationship A mutually beneficial Company/Union relationship An outcome in line with our Global Vision: An outcome in line with our Global Vision: To become the world’s leading consumer company for automotive products & services, Ford must provide a business environment that will allow all employees to contribute their fullest potential. To become the world’s leading consumer company for automotive products & services, Ford must provide a business environment that will allow all employees to contribute their fullest potential. No Boundaries

10 The HR Co-ordinator Structure in the B/M Plant Structure in the B/M Plant HR Manager HR Manager Labour Relations Manager Labour Relations Manager HR Co-ordinators (4) HR Co-ordinators (4) Industrial Relations impact (Awards, EBA) Industrial Relations impact (Awards, EBA) Cross-functional impact (Safety, Workcover, VRS, the medical centre) Cross-functional impact (Safety, Workcover, VRS, the medical centre) Working with the Union (shop stewards) Working with the Union (shop stewards) No Boundaries

11 Ramp-up & Recruitment Ramp-up for Barra: Ramp-up for Barra: Rebalancing in response to forecast need to increase capacity 2002 – 2005 Rebalancing in response to forecast need to increase capacity 2002 – 2005 Increasing production line speed Increasing production line speed 380upd currently 380upd currently 412upd September upd September 2002 Re-adjust again after September 2002 Re-adjust again after September 2002 Increasing work complexity Increasing work complexity Recruitment / staffing issues Recruitment / staffing issues How many? How Soon? How many? How Soon? Training & development issues Training & development issues No Boundaries

12 Labour Strategy Outsourcing issues Outsourcing issues Impact on the shop floor Impact on the shop floor Labour preference planning Labour preference planning Internal? External? Internal? External? Placement Placement Ensuring no industrial disruption Ensuring no industrial disruption Working with external suppliers Working with external suppliers No Boundaries