HR assignment help on: Theories and models of management
In existing scenario, where business environment has become quite dynamic and competitive, the importance of different concepts and management related models have been felt quite significantly. The direct implication of different management related theories and concepts can be seen explicitly over different functions related with the management of business organizations. In relation to the manufacturing industry, the concept and theory of production provided by Henry Ford, a well known industrialist, and economic is used quite frequently. Henry Ford has proposed his findings on the basis of his wide experience in automobile manufacturing industry. in existing period of time, there are different other manufacturing related industries, which are designing their production related strategies and factory processes on the basis of the theory of production as proposed by Henry Ford. In context to this, the essay attempts to explore the concepts proposed by Ford and their validation in existing scenario. In direction to this the paper judges both positive and negative consequences of the implications of theory of Henry Ford so that proper implications and applicability of the concepts can be applied in existing business conditions.
Meaning and concept of Fordism
Fordism is an economic concept of production proposed by one of the well known industrialists, economists and founder of Ford, world’s one of the largest automobile manufacturer companies, during the decade of 1940s. The term, Fordism is directly related with the pattern of mass production and consumptions within highly developed economies. The concept of Fordism states that the combination of mass consumption and mass production is a signal of sustainable economic growth and materialistic advancement of the industrial scenario of a particular country. Among different economic theories, Fordism is known as a social and modern economic phenomenon that is quite related with industrial mass production (Vidal 2011).
According to the Fordism economic structure for the purpose of boosting production, it is quite essential for the organization pay relatively high wages and incentives to the worker. This strategy of high wages for higher production can lead the company towards mass production, which is a signal of highly developed and success economies. The Fordism proposes the company to redesign manufacturing system so that standardized and low good cost goods can be produced in the mass quantities. The phenomena of Fordism can be better describe as a way of economic expansion as well as technological advancement induced within a specific manufacturing process so that production can be possible in huge volume. The principle also prompts organizations to use special purpose machinery as well as unskilled labor for boosting up the overall production (Peter 2010).
In starting, the concept of Fordism is designed for production expansion in automobile industry only. However, after witnessing some intensive success of the concept in automobile industries, other industries have also adopted Fordism in their production process. In short, the concept of Fordism can be explained in three specific points.
(1) In the production, the organization should intensively use machines and newer technologies so that standardization of product and volume of production can be enhanced.
(2) Each manufacturing units must use special-purpose tools for the purpose of design assembly line. Assembly lines compose of unskilled workers, who are trained to do only a specific task again and again. The rationale behind the establishment of assembly lines is to train employees and make them expertise in one particular field.
(3) Workers should be paid adequately so that they can be remain motivated and contribute in the mass production targeted by the company (Neilson and Rossiter 2008).
On the basis of the review of these important aspects of Fordism it can be considered that Fordism is a variant of scientific management theory.
Contribution of Henry Ford in the induction of changes factory processes
In existing scenario, the disposition of factory processes prevailing within different manufacturing industries has been developed from the vision of Henry Ford, who presented the concept of mass production for attaining high economic growth. Henry Ford, founder of Ford Motors, is the first industrialist who presented practical implication of Taylor’s scientific management technique in his factory process. In the early part of 20th century, in the US market an intensive growth in the demand of cars was generated. In this period of time, it became quite essential for automobile companies to boost up their production so that demands of customers can be matched. However, this was not possible with the conventional manufacturing and factory processes (Olson 2002).
In this context, Henry Ford has presented a new model for improving the production efficiency. He incorporated Frederick Winslow Taylor’s scientific management principles with the factory process. The introduction of moving assembly line in the production units is one of the major changes inducted by Ford. For the purpose of having better use of available unskilled work force, he created a specific assembly line in which, unskilled workers are provided with some specific training to undertake a specific task. The practice of assembly line has thrown an intensive impact over production capabilities of the organization (The Historical Evolution of Operations Management 2007).
Ford’s contribution in manufacturing industry can also be seen in the promotion of mass production trend. In his company, he promoted the production of standardized goods in large volume. He used unskilled or semiskilled worker, along with high tech and costly equipment. Ford has put emphasis over production of uniform and standardized products so that mass production of mass production of different interchangeable spare parts can be proved worthy. This decreased the time and cost employed within the assembly line of the production. The replacement of craft production with standardized production was one of the most prominent changes employed by Ford in factory process. For promoting standardized production, Ford has also promoted the mechanization of the factory processes (Valli and Saccone 2009).
Another important contribution of Ford in manufacturing industry can also be seen in the promotion of the phenomena of Division of Labor at factory site. He proposed that at a manufacturing unit, division of labor is quite necessary. The production manager must divide the entire labor force into some specific groups, i.e. skilled, semiskilled and unskilled worked. The work assigned to them and their wages should also be decided on the basis of their skills and contribution to production.
Ford stared the practices of dividing the entire task into a series of some specific tasks. For the purpose of accomplishing such task, he assigned individual worker. In this way, as per the concept of Ford, only one individual is responsible for accomplishment of a specific task. This helped employees to have perfection in the accomplishment of the tasks (The Historical Evolution of Operations Management 2007).
Positive consequences of implication of Fordism
Fordism has brought some radical changes within the existing factory process and trends prevailing within manufacturing industry across the globe. The positive consequence of the proper implication of Fordism in manufacturing of automobile firstly has been seen in the rapid growth of the production for Ford. After the implication of the Fordism, there a significant growth in production was sighted in the most efficient manner. The phenomenon has provided some intensive and scientific way of enhancing production in manufacturing unit. In direction to this, with the help of Fordism concept, manufacturing business organizations have changed their strategic orientations. The concept has imposed the business organizations to use some important and effective measures such as usage of machines and scientific procedures and creation of assembly line for the purpose of enhancing the production within the manufacturing units (Valli and Saccone 2009).
Along with this, the concept of Fordism can also be proved as one of the most effective and crucial way to keep its workforce motivated as the concepts has elaborated that high wages provided to employees can be resulted into increased efficiency of employees and high degree of production attained by business organization. Machination and automation is one of the major impacts of popularity of Fordism philosophy undertaken by manufacturing business organizations, which has thrown a revolutionary impact over manufacturing industry across the globe (McDowell and Christopherson 2009).
The positive consequences of the implication of Fordism can also be seen in the context of societal development. In relation to this, the concept of Fordism has explored a way to provide social development. Fordism has advocated the high wages to enhance the economic status of worker so that can also be able to afford different essentials of better living. Along with this, in the compliance of the scientific management theory, the concept of Fordsim has also supported the fair wages and incentive system within the organization in which, a worker can be able to get adequate value of hard work done by him in the favor of the organization. From the perspective of the employee motivation and job satisfaction, a performance based wage and incentive system can be proved quite effective and crucial (Bonanno and Constance 2010).
Some crucial positive implications and impact of Fordism concept of mass production can also be registered in economic development of the related county. The concept implies that a country should be more focused upon enhancing the overall production as well as consumption within the country so that the overall growth of the economy can be channelized in the most effective manner. In the conditions of high consumption rate, the emphasis of business organizations as well as government of the country over mass production will not only be resulted into proper accomplishment of needs and demands of people but it also lead the country to revitalize its economic market place (McDowell and Christopherson 2009).
These are some crucial, practical and positive consequence of the Concept of Fordism in modern economic conditions, which drives the industries and business groups to make some crucial changes in their existing factory and manufacturing process.
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