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Challenge in Recruitment and Selection in a Culturally Diverse Environment in Ford Motor Company


Multinational corporations (M.N.C.s) that operate abroad have several challenges in staffing and other I.H.R.M. activities in recruiting and selecting their employees. They must manage the culture, laws, transport, and strategic considerations in the environments outside their home country. Take, for example, Ford Motor Company, a worldwide conglomerate with American roots, it must not only follow local laws, rules, and regulations, but it must also overcome challenges in endorsing its global organizational staffing norms to local circumstances without giving in to what it means to be a multinational firm.

To get a competitive advantage, a firm should acquire people with a varied skill set, screen applicants using structured interviews and behaviorally-based performance, and finally, hire, develop, and retain high potentials ((Patel et al.,2019).). Obtaining low-cost resources, like finance, marketing a new product, or developing new technology, used to be a way to acquire a competitive edge. However, innovation is still necessary to achieve a competitive advantage and meet business objectives.

Since 1900 B.C., M.N.C.s have staffing of their expatriate personnel shifted from one corporate site to another, facilitating the logic of international Human resource management to be well understood (Lakshman et al.,2017). Since then, multinational corporations like Ford Motor have concentrated on controlling the internal and external elements that impact personnel decisions, such as the pandemic, employee availability, host market experience, usage of expatriates from other countries, and parent country citizens’ conditions (PCNs).In line with these agency-related problems, Ford Motor Company, as an M.N.C., Ford Motor company has at large lost the benefits of staffing with people familiar with them and their business scope, locomotive manufacture as recruitment and selection fall to be a major international human resource management issue(Enkhbayar,2018). In the long run, this limits the company’s capacity to recruit and mobilize employees’ distinctive qualities (talent) to improve the company’s business strategy.


Overview of Ford Motor company

Ford Motor Company is a firm that focuses on manufacturing, designing, marketing, and servicing of full line ford automobiles, that is, cars, Lincoln luxury vehicles, and trucks. Ford company thus runs under three sectors ford mobility, credit, and automotive (Christensen,2021). The Ford automotive sector focuses on developing, manufacturing, distributing, and servicing the manufactured Lincoln and Ford automobiles accessories. Ford’s autonomous car development and allied companies make up most of the Mobility Department. Argo AI, an autonomous driving system developer, and Spin, a micro-mobility service provider, are owned by the firm. The Ford Credit section includes the Ford Credit business, which largely consists of vehicle-related lending and leasing operations on a consolidated basis (Pereira,2017). Ford Credit provides various vehicle financing options to and via dealers worldwide. Customers from North America, South America, the Middle East, Africa, Europe, and the Asia Pacific. Transmission factories, assembly plants, casting plants, metal stamping plants, engine plants, and other component facilities are controlled by corporations worldwide (Higgins et al.,2020). It also has manufacturing plants, distribution hubs for components, and engineering centers worldwide. Prioritizing people, curiosity, building to be tough, the one ford slogan, playing to win, creating tomorrow, and doing the right thing are all part of Ford’s corporate culture.

Figure 1: Ford Motor company’s corporate culture.

Ford Motor company's corporate culture

Source: (O’Cearnaigh,2019)

History of Ford Motor company

Henry Ford and 11 other partners founded Ford Motor Company in 1903 as an American vehicle company (Crespo and Vazquez,2017). The company was reincorporated in 1919, giving Ford, his wife, Clara, and their son, Edsel, sole control; until January 1956, when the common stock was first offered for public sale, they, their descendants, and the Ford Foundation (established 1936) were the only investors (Lambert et al.,2018). The company manufactures vehicle components and accessories and passenger cars and trucks. The company’s headquarters are situated in Dearborn, Michigan.

When revenues began to slacken, the firm attempted to expand its product line. Ford Smart Mobility was founded in 2016 to develop car-sharing and self-driving cars. The company indicated that its electric vehicle lineup would be expanded the following year. Ford said in 2018 that all passenger vehicles would be phased out, except for the Mustang and Ford Focus Active (Sanci et al.,2021). In the late twentieth and early twenty-first centuries, Ford’s F-series pickup trucks were the most popular vehicles in the United States. Instead, the corporation will concentrate on trucks, S.U.V.s, and crossover cars.

Mazda and Aston Martin, and the Lincoln brand are among the company’s other brands. Ford originally owned Jaguar and Land Rover, but in 2008, they were sold to India’s Tata Motors. Volvo was sold to Geely Automobile in 2010. Ford phased out mercury in 2010 (Vargas,2020). Apart from its brands, Ford is notable for its production advancements, with Henry Ford being credited with inventing the “assembly line” technique, which is now standard in the automobile industry.

Outline Of International Recruitment and Selection

Identifying, attracting, interviewing, selection onboarding, and employee selection into a company, according to Dany & Torchy (2017). Depending on the company’s size, different employees are in charge of recruiting. Larger businesses may have whole recruiting teams, whilst smaller businesses may have one. The hiring manager in a small firm may be in charge of recruitment (Hamza et al.,2021). Furthermore, many corporations hire third-party agencies to handle their hiring. Classified adverts, job boards, social media platforms, and other approaches are almost usually used by companies like B.M.C., Diardi, Etox, and Hyundai. Many businesses use recruitment software to find exceptional candidates more quickly and efficiently. Recruiting is frequently done in tandem with or complement Human Resources.

On the other hand, recruitment is a deliberate process for attracting and retaining talent in I.H.R.M. It begins with identifying, recruiting, screening, shortlisting, interviewing, choosing, and eventually hiring the best applicant for a company’s vacant position (Rozario et al.,2019). Employees are always considered a company’s most precious asset, and its I.H.R.M. department’s People Management role is the most important (Lepisto and Ihantola,2018). The major task of the International Human Resource Management (I.H.R.M.) team is to continue extending the organization’s Human Capital pool, resulting in the selection of the best candidate for the job.

In international human resource management, the M.N.C.s’ selection process places the appropriate personnel in the proper roles in the parent country and on overseas assignments (Klepic,2019). As a result, it encompasses the activities involved in aligning organizational needs with the talents and capabilities of employees. Effective selection can only be made when there is effective matching. The global firm will obtain greater employee performance by selecting the finest person for the job. As a result, multinational corporations such as Ford Motor should choose the wrong candidate regularly, wasting time and money in the process (Brown et al.,2019). The poor selection might also lead to absenteeism and layoff. The process of thoroughly reviewing candidates who apply for positions to pick the most suitable candidates for available staff posts is called selection.

In an M.N.C., a problem with appropriate recruiting and selection can have long-term consequences for things like revenue, employee turnover, morale, and confidence. Staff replacements usually spend a considerable percentage of a position’s yearly remuneration in human resource management budgetary allocations (Stanescu et al.,2020). Job advertising costs, on-site or off-site training, and other expenses may be included in these payments. If a company hires someone who is unqualified for a sales associate or account manager job and doesn’t know it, it might lose a lot of money due to missed sales or lost clients (Potocnik et al.,2021). The most important factor that might bring you down is employing the wrong person.

Furthermore, recruiting the incorrect people into an organization usually leads to higher employee turnover, costing the M.N.C. money to replace vacancies regularly. Staff turnover occurs due to recruiting and selection issues, resulting in a loss of time, money, and energy and additional recruitment and training expenditures, as Peugeot Citroen and General Motors have experienced in Argentina (Holm and Haahr,2018). A vacant position costs the corporation money in various ways, including missed production, frustration from frequent training, and the inability to properly complete business tasks.

Good staff may have decreased confidence in human resource management, realizing that poor recruitment and selection strategies are employed (Okolie,2020). On the other hand, the managers will have no confidence in the human resource management on its ability to bring effective staff teams into firms’ operations, motivate and train them to increase the organization’s productivity. If employees participating in the recruiting process are fired, they may feel guilty and stressed (D’Silva,2020). Hiring new employees is always hazardous, and hiring mistakes may be disastrous, with severe direct and indirect economic consequences.

Cultural diversity in international human resource management

Cultural diversity among employees is a critical issue for managers because, aside from the undeniable reality of this in the majority of multinational companies and national companies, a different force of labor, from a cultural standpoint, brings both benefits and drawbacks to the organization like Nissan and Honda Motor companies by 2015 had increased their spending on the Hispanic markets by 17.6% (Wolniak,2018). When a company hires people from other nations, the company must adhere to culturally appropriate limits. To comprehend the impact of multiculturalism or cultural diversity of human resources on the company’s activity with international activities, it is helpful to present the main criterion that defines cultural groups, as identified by G. Hofstede as a result of an investigation of cultural diversity investigation on Ford Motor Company staff all over the world.

The distance in Infront of the power index n cultural diversity implies that staff is given unequal privileges in the economy and society (Andrijauskiene and Dumciuviene,2017). The power development index is closely tied to the distribution of wealth and economic strengths in Germany, Turkey, the United Kingdom, India, Brazil, Argentina, South Africa, China, and Australia, where some moto manufacturing firms like Tata and Nissan have highly ventured into. Some of the highly ranked nations on staff resigning in the managerial and other international assignments in Ford motors company Latin Europe nations and south America. On the individualism versus collectivism index, the United States is a more affluent country, and Ford Motor Company’s parent country has its staff individuated (Alvarez and Martinez,2021). In contrast, less developed and developing nations like South Africa have developed collectivist elements.

The masculinity versus feminism index is the position of staff in the subsidiary and parent country of a multinational enterprise on sexes and culture (Minkove and Kaasa,2020). In a masculine civilization, the roles of man and woman are firmly defined, but in feminine societies, the positions are interchangeable, and there is a great deal of equality. Japan, Greece, Italy, Switzerland, Greece, Venezuela, Sweden, Denmark, Holland, and Finland are home to the dominant male cultures where brands like Volkswagen, Mercedes-Benz, and Renault have gained market influence (Swoboda and Hirschmann,2017). In contrast, Sweden, Denmark, Holland, and Finland are home to the dominant feminine cultures.

The control of the incertitude index can be termed as the extent to which a person builds the fear of the unknown. The demand for security, preparation, and order dominates in societies where uncertainty management is more significant, as it is in Japan, France, Greece, Portugal, and Belgium (Vollero et al.,2020). In exchange, in Denmark, Sweden, and the United Kingdom, S.U.A., the control of uncertainty, which consists of absorbing risk in an established activity, is lowered.

Hofstede updated the Confucianism vs. Dynamism measure to include the long- and short-time horizons in a multiculturally diverse workforce. Long-term Confucian societies (China, Hong Kong, South Korea) emphasize long-term perspective and endurance (DeBode et al.,2019). In contrast, short-term societies emphasize the significance of the state, social duties, and quick choices (U.S.A., Canada, Great Britain, Nigeria).

Figure 2: Hofstede’s Cultural Dimension Model

Hofstede's Cultural Dimension Model

Source: (Talalova and Werthschulte,2020)


Ford Motor Company represents an international challenge, opportunity, and fulfillment; as a result, the company’s human resource department has a challenge in attracting highly qualified staff for recruiting purposes on international assignments (Lazdowski,2020). The firm has challenges in hosting various recruiting fairs to recruit new employees. Ford Motor Company has always been on struggles on the lookout for the most significant new ideas and the brightest new talent, which includes discovering people who are willing to advance their careers. When internal recruiting fails, Ford Motor Company’s human resource department cannot choose a suitable applicant from a pool of external candidates in a culturally diverse workforce (Lambert et al.,2018). The H.R.’s responsibility to guarantee that all workers adhere to the One Ford plan, which enables employees to attain health and financial security, has been a rough road on the ride.

The human resource recruitment function encounters barricades as Ford Motor Company fails to achieve its goals. The selected employees have a lesser feeling of empowerment due to the One Ford Plan. It is I.H.R. M’s job to deliver “high-impact, innovative solutions and services that support the One Ford Plan while moving people in a world-class, cost-effective, and safe manner” (Day,2021). H.R. also fails to foster strategic partnership with operations in other culturally diverse nations to optimality; it is their role to assist in aligning the right workers to accomplish the company’s objectives.

The impact of recruitment and selection function of I.H.R.M from a cultural perspective

The sort of approach used throughout the recruiting process is determined by culture. Ford motors human resource management across all international subsidiaries have an issue in encouraging a variety of opinion, experience, perspective, ethnicity, gender, faith, and more to the international human resource standards (Meyers,2019). As a global corporation, diversity rarely reflects the communities in which it operates, and deteriorated inclusiveness has made the innovation and preservation of competitive advantage in the face of competitors like Tata Motors, Toyota, Honda, Mazda, Mitsubishi, and many others more (Venter,2018). Ford Motors has lost hundreds of accolades in the previous several years from magazines and organizations that acknowledge the value it had been placing on its staff and its ability to work together. Ford Motor Organization has lost a significant ability to employ forward-thinking people and is eager to drive forward (Vargas,2020). Because they are a worldwide organization, they strive to employ people from various cultural backgrounds.

The implication of recruitment and selection functions I.H.R.M issue

Technology advancement has significantly played a part in the recruitment process for any company that heavily invests in technology, which has not been the case in Ford Motor Company (Direcion,2018). Now applications are being filled out online, and resumes are being uploaded worldwide from applicants for the company. With Ford being global, the H.R. department encounters difficulty tracking which country and department they are applying for (Arroyo,2019). Additionally, with using online resources, Ford has had challenges in using different methods to optimally reach new applicants, such as LinkedIn, Facebook, Twitter accounts; these accounts let people know they are hiring and how to apply.

Ford’s competitive advantage sought from proper recruitment and selection strategy is hardly realizable. Ford Motor Company has difficulty seeking professionals worldwide to create new workforce solutions and experiences to acquire a competitive edge and align with company strategy (Gustas and Gustiene,2021). Although it employs intelligent and mobile technology, such as social media, to increase process efficiency and provide good candidate experiences when recruiting, some of the best candidates are snatched by competitive brands that have highly super-advanced technology. Ford has some challenges forming partnerships with professional groups and establishing contacts with premier institutions to attract eligible job prospects when recruiting in different international locations(Dachyar and Miranda2019). Their executives frequently visit college campuses to provide firm knowledge and listen to the next generation of automotive professionals.


It was discovered that balancing recruitment and selection processes and cultural diversity is crucial for multinational firms like Tata Motors to fulfill their strategic objectives. Because subordinates are one of the firm’s most valuable assets, relevant international human resource skills, backup resources are required to select staffing techniques (Lambert et al.,2018). At the international level, the international recruitment and selection for performance management are strongly linked to localization and standardization of performance evaluation, recruiting and selection, mentoring, coaching, remuneration, promotions, and awards(McKinlay and Starkey,2017). The internal and external components in the Ford Motors Recruitment and selection exercise are influenced by localization and standardization.

Although Ford Motors is a strong company, its subsidiaries encounter challenges developing its human resources through its parent company from the United States. The staffing policies have derailed Ford’s growth from a small company based in Dearborn, Michigan, and became a global leader through their innovation compared to other highly competitive M.N.C.s like Walmart and Coca Cola, which have sound staffing policies in a culturally diverse environment(Vargas,2020). On the other side, Ford motors company was discovered to have the best governance structure in the industry. However, compared to rivals, international human resource management seldom has a high quality of employee professionalism.

To manage the Challenge in recruitment and selection, Ford Motors should first build its competitive advantage. The competitive advantage will bring Ford Motors success in international human resource management. The interested parties in being part and parcel of Ford’s team will apply professional competence and expertise. According to Djikhy and Moustaghfir (2019), the competitive advantage focus will build an interface where the international human resource department in all its subsidiaries can interact with the eternal environment on cultural diversity to have a clear outline of issues that will make an employee gain interest in a particular company.

On the other hand, Ford Motor should develop International human resource management (I.H.R.M.). An improved International human resource management solves international issues in recruitment and selection of new staff by building a business partnership with a culturally diverse environment—the developed I.H.R.M. The framework should be consumer and employee-centric to bring forth innovation and diversity in the recruited and selected staff—additionally, the I.H.R.M. The framework will focus more on employee training, selection, recruitment, remuneration, retention, and performance appraisal.

Ford Motors should formulate a policy framework that aligns with the global business environment. The recruitment and selection criteria should be regularly updated and made available in all social media domains regardless of whether it has or hast subsidiaries in every nation it chooses to advertise recruitment and selection interests.


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