Introduction
“In the past the man has been first; in the future the system must be first.”
In the late 19th century, Frederick Winslow Taylor, known to many the forefather of scientific management, sparked the automation revolution, the third great transition in the history of humanity (after the Neolithic Revolution, a result of the development of agriculture around 6,000 B.C and the industrial revolution in the 18th century) (Souza, 1999). However, it can be argued that Taylor’s greatest contribution to capitalism was not the revolution itself, but how Taylorism brought about the era of competition and syncretism with contrasting or corresponding concepts on organisational management and workplace practices, particularly Fordism, which arguably extended the dynamics of Taylorism, centered on the use of the assembly-line. This essay will examine how Fordism developed organisational management and modified workplace practices by exploring known historical application of its principles and theories. Thereupon, it will further analyse how elements of Fordism still exist in modern management sciences, taking example from Nike’s organizational system.
How Fordism changed organisational management and workplace practices
First of all, it is essential to explore the pre-Ford era to understand the changes Ford instilled in workplace practices. The pre-Ford era mainly involved skilled craft workers operating general-purpose machinery with non-standardised parts to assemble small quantities of high quality products (Edgell, 2006, p.74). A real-life example of this is Ford’s first enterprise, the Detroit Automobile Company, which its gasoline-powered delivery truck proved to be expensive, unreliable, and complicated to manufactur...
... middle of paper ...
...ers, S. 2003. Slavery in the twentieth century. Walnut Creek, CA: AltaMira Press.
Souza, W. 1999. Fordism and its Multiple Sequels. [e-book] London: Available through: http://www2.cddc.vt.edu/ http://www2.cddc.vt.edu/digitalfordism/fordism_materials/souza.pdf [Accessed: 19 Jan 2014].
Sturgeon, T. and Florida, R. 2000. Globalization and jobs in the automotive industry. Final report to the Alfred P. Sloan Foundation. International Motor Vehicle Program, Center for Technology, Policy, and Industrial Development, Massachusetts Institute of Technology.
Wild, M. T. and Jones, P. N. 1991. De-industrialisation and new industrialisation in Britain and Germany. London: Anglo-German Foundation for the Study of Industrial Society.
Yagi, K., Yokokawa, N., Shinjiro, H. and Dymski, G. 2012. Crises of global economies and the future of capitalism. Hoboken: Taylor and Francis.
Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries.
By 1927, Ford was a very successful industrialist, who had made a fortune out of manufacturing cars and displayed a new model of industrial production. He paid his workers much higher than average wages and offered various other incentives to encourage them to live the lives he thought they should. However, he was not a totally honest employer. He was violently anti-union and employed thugs to intimidate anyone who tried to organize and represent his workforce. Ford's generosity as a boss was dependent on letting the company make decisions for the workers, not just in the factories but in the way employees lived their lives, spies were actively out and about observing workers' off duty lives. Ford thought he could create a vast rubber plantation in Brazil, thus ensuring a reliable supply of latex for his new Model A as well as for his Ford trucks and tractors. In the process, he intended to show the world that his system of production would also elevate the lives of his workers.
In Britain, industrialization changed the lives of workers in many ways. One way workers lives changed is being able to earn higher wages. They could make more money in factories than on farms. Wi...
Shahrokhi, M. (2011). The global financial crises of 2007-2010 and the future of capitalism. Global Finance Journal, 22, 193-210. doi: 10.1016/j.gfj.2011.10.010.
The period during which there was an increased output of machine-made goods, also known as the Industrial Revolution, played a critical role in reshaping Britain’s economy. The Industrial Revolution, stimulated by advancements that were made during the Agricultural Revolution, began in Great Britain for many reasons. In addition to Britain’s broad availability of natural resources, the count...
The 1920’s was a time of great social, political, and economic change. The early automobile industry was no exclusion. It appears that throughout history, the figures that stand out the most are either worshipped or despised, and there is very rarely an in-between. Henry Ford, an icon of the 1920’s and the early automobile industry is no exemption. Many people love Ford for his innovative and entrepreneurial skills, while on the other hand, Ford is disliked by many due to his association with Anti-Semitism. Regardless of how Ford is viewed, many decisions he made significantly impacted the automobile industry. These decisions included installing the moving assembly line in his plant, and introducing the Five-Dollar Day. Through the implementation of the Five-Dollar Day, Ford was able to drastically change how the Ford Motor Company company operated, and how business would operate for years to come.
This essay will examine the causes of the 2008 Global Financial Crisis (GFC) from a Marxist perspective. This paper will specifically examine and critique how Marx’s Theory of Crisis can be applied to understand and interpret the underlying structural causes of the 2008 Global Financial Crisis.
O'Brien, Patrick, and Roland Quinault, eds. The Industrial Revolution and British Society. Cambridge: Cambridge UP, 1993. Print.
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
Many comparisons can be made between the two theories, such as the mechanisation, fragmentation and specialisation of work and that a lack of intellectual or skilled content will speed up the work at hand. Fordism's mechanisation of mass production further emphasised many of Taylor's popular beliefs about management being divorced from human affairs and emotions, using 'humans as instruments or machines to be manipulated by their leaders' (Hersey p.84). Fordism fused and emphasised the scientific methods to get things done by Ford's successful mass-production processes. Contrasts also exist between the two theories. Fordism dehumanisied the worker whereas scientific management convinced the workers that their goals could be readily achieved along with their employers goals, therefore they should all work together in this direction. Fordism suited industrial companies participating in mass production, whereas Scientific Management could be used in many types of organisation. Large companies such as Ford Motors, The Reichskuratorium fur Wirtschaftkichkeit (RKW) in Germany examples these theories in practice. These theories of the past are lessons for the way modern organisations are run today. Managers now realise that they should treat their workers more democratically and since the mid-70's, sweeping changes in markets and technology have encouraged managers and manufacturers to use greater product diversity and more flexible methods of production. Movements towards a more flexible organisation have become apparent. Examples of orgainisations such as Nissan, NASA and Toyota serve as modern day examples of post-Fordism and depict movement towards a modified Scientific Management.
“Management is a process of planning, organisation, command, coordination, and control” (Morgan 2006, p.18). Rational organisation design is a bureaucratic method of management which emphasizes efficiency to achieve the end goal and the management of multiple companies have taken upon this system. Figures such as Frederick Taylor and Henry Ford have both shown and laid a path way for Rational Organisation which has become known as Taylorism and Fordism. The design has received criticism and both Taylor and Ford have been portrayed as villains with Taylor being called “enemy of the working man” (Morgan 2006, p.23) as the system dehumanised workers by taking all of the thought and skill from them and giving it to the managers this is because the tasks given were simple and repetitive. As staff needed little training they became an easily replaceable asset and thus more machine than human.
Ford used Taylor’s scientific management principles and come up with the mass production and assembly line. This benefitted the motor vehicle industry highly. The effects of Taylorism and Fordism in the industrial workplace were strong and between the period of 1919-1929 the output of industries in the U.S doubled as the number of workers decreased. There was an increase in unskilled labour as the skill was removed and placed into machines. It lead to the discouragement of workers ability to bargain on the basis of control over the workplace.
Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf
Warwick J. McKibbin, and Andrew Stoeckel. “The Global Financial Crisis: Causes and Consequences.” Lowy Institute for International Policy 2.09 (2009): 1. PDF file.
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto