Henry Ford - A Great Innovator
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Case Details:
Case Code : LDEN025
Case Length : 13 Pages
Period : 1903
Pub Date : 2003
Teaching Note :Not Available
Organization : Ford Motor Corporation Industry : Automobile
Countries : USA
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Model T - An Astounding Success
The first Model T finally rolled out in October 1908. It was affectionately
called 'Tin Lizzie,' slang for an obedient and reliable servant. The Model T was
priced at $850 and was simple, light, flexible, powerful, and easy to drive. The
car was targeted primarily at farmers and had higher than normal ground
clearance. In the very first year, Ford set new industry records by
manufacturing nearly 10,660 Model Ts. In the second year, 18,257 more Model Ts
were produced. With a significant increase in the demand for Model Ts, Ford
decided to set up a new factory...
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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"25...
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The Criticism
Ford was held in high esteem for his invaluable contributions to the
automobile and aviation (Refer Exhibit II) industry worldwide, but he also
faced criticism on a few grounds. Some said that the segregation of the
assembly process into 'thoughtless recurring tasks' made Ford workers into
robots. The critics felt that the assembly line made workers' mechanical
skill redundant. The workers no longer needed specialized technical skills
and were only required to do standardized unskilled work. Ford rebutted
these allegations and said, "I have heard it said, in fact, I believe it's
quite a current thought, that we have taken skill out of work. We have
not... |
Exhibits
Exhibit I: A Brief Profile of Henry Ford
Exhibit II: Ford's Contribution to the Aviation Industry
25] As
quoted in the article, "Driving Force: Henry Ford," by Lee Iacocca, TIME.
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