HENRY FORD - A GREAT INNOVATOR
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continued from :MODEL T - AN ASTOUNDING SUCCESS
Describing the impact of the Model T in the US, John Steinbeck,
Nobel Prize winner for literature (1962), wrote in his book Cannery Row, "One
should write an essay brimming with erudition. An essay on the moral, physical
and aesthetic impact of the Model T Ford on the American people.
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Two generations of Americans knew more things about
the Ford batteries, than about the human embryo. More things about the
planetary system of the gears than about the sun system of planets. Most
children of the period were conceived in a Model T and quite a number of
them were born in a Model T."More than 16 million Model Ts were sold
during 1908-1927. In 1925, the Ford Co. was rolling out two million Model
Ts per annum. Analysts attributed the secret of production in such high
volumes to Ford's mass-production and assembly line manufacturing methods.
Thomas A. Stewart, Associate Editor, Fortune, said, "As Ford adapted the
emerging principles of mass production to the automobile and hired tens of
thousands of workers to put those principles into practice, he gave rise
to an entirely new phenomenon: the blue-collar middle class."[1] |
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FORD'S EMPLOYEE-FRIENDLY PRACTICES
Ford had generous labor policies and believed in the
importance of harmonious relations with workers. In order to retain the
workers, Ford gave them bonuses and other benefits including free medical
treatment, and invested heavily in training programs. A sociology department
was established in mid-1910 to carry out research studies on employees' social
attitudes, their loyalty and obedience. The studies helped improve the plant
layout and the job description of workers. Sports facilities like fields and
playgrounds for the company's employees and their families were set up. Ford
said, "I want the whole organization dominated by a just, generous and humane
policy."[2]
In spite of the benefits offered to employees, the employee turnover rate at
the Ford Co. in late-1913 was around 50%. The high turnover was due to the
repetitive nature of assembly-line work and continuous increases in workers'
production targets. Moreover, the workers were getting a wage of just $2.38 for
a nine-hour workday.
[1]As quoted in the article, "Henry Ford Claims Business Honor," The
Associated Press, November 2, 1999.
[2]As quoted in the article, "Driving Force: Henry Ford," by Lee Iacocca, TIME
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