Henry Ford 's Management Strategies

2168 Words Feb 4th, 2015 9 Pages
Henry Ford (1863-1947), the founder of Ford Motor Company was an innovator and a visionary businessman. He was born in a moderate household to a farmer, William Ford and always had a flare for machines. He built his first vehicle, the Ford Quadricycle in 1896 and then went on to establish his own company, Ford Motor Company in 1903. He revolutionized the automobile industry by introducing the automobile, the luxury of the rich then, to the masses. He pioneered the moving assembly line for the mass production of the company’s Model T cars to satisfy its exponentially increasing demand and doubled the daily wage to 5-dollar a day for the laborers to reduce the job turnovers. Henry Ford’s management strategies and ideas gave rise to a revolutionary phenomenon in the industry, referred to as fordism. Bob Jessop (2013) defined Fordism in narrow terms as, “employment of semi skilled labor on a moving assembly line” or in broader terms as “the spread of the American way of life under the impact of mass production and mass consumption.” The essay critically analyzes Henry Ford’s contribution to the study of organizational behavior and argues whether his leadership style was transactional or transformational.

Figure 1: Henry Ford (1863-1947) “Everything can always be done better than it is being done.”
In the words of Henry Ford (cited in E.Andersen, 2013), “There is one rule for the industrialist and that is: make the best quality goods possible at the lowest cost possible,…
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