How Has the World of Work Changed in Post-Fordism Era

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Capitalism is a political, social and economic system subject to periodic instability, change and the like which influences the business world in many ways. The Post-Fordism era in broaden sense is generic description of Capitalism period which mainly is characterised by flexible production of non-standardized, better-quality goods embracing adaptability of production processes in harmony with the unpredictable nature of markets to meet customers’ satisfaction. The changes made in notion of improving the way things were done consequently changed organizations’ systems and how people are managed inorder to materialize efficiency.
Among commonly nominated factors that rationalize the shift towards Post-Fordism, the economic
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5. Market Strategy: Ford’s compact Model T vehicle was standardized for a price so low that majority can afford to buy. Ford has considered his workers as target customers and substantially increased their wage to give them the means of becoming customers which actually materialized massive consumption. Ford exercised keynessian welfare such that workers spend their high wage to purchase the vehicles then the extra spending they make allow the company to hire more people and pay them. However, Fordist regime was confined in national market and highly dominated by limited products.
Fordism was prevalent in car manufacturing industry; albeit, its principles were exported around the world in other industries. In accordance with Porter’s generic strategy-1985, Ford’s business strategy considers cost leadership as its competitive advantage with utmost effort on cost reduction to ensure mass consumption.
Model T car once surpassed all expectations and attained a peak of 60% of the automobile output within the United States, Rae, John B. (1969). . However, the monotonous and physically demanding nature of the tasks became excruciatingly boring and led high turnover of labor. In 1913, Ford required between 13,000 and 14,000 workers to run his plants at any one time and in that year over 50,000 workers quit . Fordism falls under Theory X authoritarian type management of McGregor’s (1960)
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