Posted at 11.27.2018
Management techniques have been through many different levels and continue to evolve even today. In the first area of the 20th century as well as the high development periods of the united states overall economy after World War II, Fordism, was at the forefront, as it focused on mass creation and mass intake as a way of increasing the current economic climate. However as the US economy went through slow development years, this specific system did not work and other management systems required precedence. Yet there are numerous organisations that continue steadily to use Henry Ford's philosophy even in the 21st century. Which is the objective of this research file to review the relevance of the principles launched by Henry Ford and the impact and impact it has on 21st century organisations.
Literature Reviews: If the change from the agricultural age to commercial mass production took place, Henry Ford and his idea that consisted of using specialized tools, set up lines and using non-skilled labour in direct production were able to drive economic development and expansion at unprecedented levels (Shiomi & Wada, 1995). Moreover it was Ford's idea that was the driving factor behind the auto industry and this system is still used to a great level by the automobile industry to date. The auto industry is still the world's greatest manufacturing industry and even though many of the leading car makers have programmed their systems to a great extent and reduced their reliance on labour, they still use the assembly series method with the principles that were unveiled by Henry Ford (Shiomi & Wada, 1995). This isn't to state that the assembly line method was the brainchild of Henry Ford but instead that the set up type of today has been greatly influenced by him and hasn't gone through many major changes in the last seven or eight generations (Gowing, Morris, Adler & Platinum, 2008). The moving assembly line that people have known through the years and sometimes appears at this point even in this years of advanced robotics being used in the auto industry was released by Henry Ford (Laurie, 2000).
There are a few institutions of thought that contain been finding it difficult to choose if Fordism has had a direct effect on the current economic system that's not wholly based on mass production and utilization as it was after World Conflict II but instead a more streamlined method that is associated with socio-economic phenomena, that is common in all professional countries throughout the latter area of the 20th century. While it might not be the same as the Fordism that was observed in the automotive industry during the era of Henry Ford, it continues to be largely predicated on the system that was formulated by him. In his system employees worked on a production collection and the responsibilities that they performed were customized in nature and most importantly it was recurring. The present day day concept of Fordism centers round the following concepts instead of the concepts that were reviewed above. These concepts are as follows
Production is small batches rather than mass production
Economies of Range are valued
The jobs and the merchandise that are produced are all specialized
Information Technology is generally used
The emphasis is on the consumer rather than different interpersonal classes in a contemporary society.
Instead of the blue-collar staff member of days gone by we visit a quantity in the climb of the white-collar employees due to this concept.
The labor force includes females instead of be male dominated like before.
The above principles have come into play due to the saturation of the key markets, which proved helpful against the idea of mass consumption. For this reason new ideas the emphasis is on uplifting the living expectations, which has changed the way in which in which the market is looked at from the manufacturers' end (development/manufacturing stand point). Rather than the consumers being regarded as a mass market that can be dished up by one general type of item, manufacturers commenced to see the consumers as people that made up many different sections of market. So that it took place to the manufacturers that the consumers were better served if they were grouped in to batches and products and services were so long as fit the goals and needs of these specific segments as opposed to the mass market (Ray & Reed, 1994).
Therefore the mass market strategy that was released by Ford has been narrowed to markets that are specific to luxury items, custom made products and positional goods. Production, which was homogenous in aspect at the start of Fordism, is today more concentrated and therefore is diverse and can be differentiated. Further as explained recently the economies of scale of the Ford period have now progressed into Economies of Range because of the diversification and differentiation that is taking place in the market place (Raynor, 2004).
The changes which may have brought about the 21st century organisation, is largely anticipated to factors such as the changing global monetary and political panorama and the changes in visible ideologies. Because of the declines that were seen in national development (that was prevalent in the post battle America) for a more globalised development system of the past due 80's and 90's, combined with the increase of global markets and multi nationwide companies, flexible field of expertise has changed the mass markets of the post warfare era. Commanding the staff to react in a certain way has now been changed and management will pay more attention to communication somewhat than buying as was seen in Ford's time. Further the centralized production process of yester year is currently replaced by outsourcing, franchising, sub-contracting, in your free time workers, temporary workers, self employed individuals and work-from home individuals. Aside from the economic changes that took place as explained above there were many politics changes which may have occurred that has obligated the evolution of Fordism (Thomas, 2004). The political changes are mainly the change from the class founded political celebrations (as observed in the uk and the United States) to the political parties that are based on social motions, gender, race, religion and region. Labour Union influence is today almost non-existent North America and is currently changed by more localized entities that take part in plant based negotiations. Further the climb of your entrepreneurialistic culture in addition has lead to the development of Fordism. Even education today is less standardized as it used to be and be more special with the task force experiencing a decline in the amounts of individuals opting for blue-collar careers and rather subscribing to the ranks of the white-collar staff (Lebowitz, 2004).
Italy is a good example of the way the concepts of Fordism have developed over the years. In areas such as Milan, Turin and Genoa, development used to be centered on the idea of mass production for mass use, however through the 1970s and later, the clusters of small companies and making plants started growing in areas such as Tuscany, Umbria and Veneto to name a few. Each one of these regions customized and produced a different set of products which were all very loosely related to one another. Each of the factories often employed workers that numbered between five and fifty (most which were below ten). This is what is called the economies of scope and a long way off from the economies of scale that we found in the original levels of Fordism (Williams, 1998). The feature of the manufacturing products was that the merchandise that were manufactured were of high quality and the staff who were employed were highly skilled and highly paid because of the higher level of skills. There was deep integration and far involvement between the business people, the designers as well as the technical engineers in each one of these vegetation and the crops themselves were design focused and multi-disciplinary in mother nature.
Japan is another good example of the evolution of Fordism that took place. After world warfare II and the damage of the united states, the company structure within the country changed dramatically, this induced the trade unions to be changed with management friendly unions, increased volume of people who were less specific plus more multi-skilled. Further the company possessed a pool of part time/temperature and unskilled workers for periphery personnel (Perkins, 2005).
Further because of the trade embargoes that the united states was confronted with after World War II, the development processes within the country could experiment on the home market so when the embargoes were finally lifted and brought in technology and techniques came into the Japanese market, the development industry was ready to absorb the techniques and better it through philosophies such as TQM (Total Quality Management) etc. Due to the price correcting that was widespread in the market, competition in the local market could only be acquired by differentiation. Further because of the demand for a variety of products the united states could have an array of facilities that were flexible and able to changeover and produce a sizable products. Therefore rather than standardizing the country had a wide array of factories and crops that were specialized in a wide variety of products. Sub-contracting and offer systems were first created in Japan, which altered the Fordist view that American companies of the time were diligently following. Instead of having costly production machinery, the evolved Fordist principles were more focused on multi-purpose technologies which were affordable for small and medium size producers who had been flooding the market (Pettibone, 2006).
Findings: Despite the fact that assembly lines are usually something of days gone by and Henry Ford's ideas of management are usually obsolete, the most significant manufacturing industry in the world, which is the automobile industry, still uses the method and the principles though it has gone by having a few transformations. Nevertheless the concepts that were presented by Ford has improved to a great magnitude today and is used in companies in many different forms.
Analysis: With the two level transformations that the concepts went through within the last century, Henry Ford's concepts remain relevant in the 21st century as they were in the 20th century. While many may dispute that his concepts have been through many different stages of evolution this is not the case. The auto industry that continues to be in existence in THE UNITED STATES and around the world use many of Ford's ideas, and lots of the ideas that are in various stages of evolution. So that it can be mentioned that the auto industry being the greatest manufacturing industry on the planet is one of the main examples of the impact that Fordism has had on the 21st century company.
The Vehicle industry runs on the mixture of the mass creation and flexible field of expertise. The versatility that was introduced into mass development wouldn't normally have been possible if Ford had not first created mass development, therefore even though Fordist concepts maybe covered and altered beyond recognition over time, it is clear that without Ford's principles the building blocks for modern day production wouldn't normally have been built and therefore present day theorist would not have had much to construct on to get to where they are today (Bencivenga, 2002). Therefore it can be concluded, that even though Fordism and Ford himself is often neglected in our flexible, technology powered, multi-skilled, multi-purpose, positional and personalized production period, the effect of Ford and Fordism is very strong and none of the could have been possible without him and his principles and methods.
Conclusion: Predicated on the large numbers of organisations that still eliminate skilled labour in direct creation, use special tools and equipment through the set up line, all go to show that the ideas that were released by Henry Ford are still relevant even in the 21st century even though mass production/mass consumption cannot be considered as a economic driver for growth. Further even in companies that the above mentioned is incorrect, the concepts in place are all concepts that have advanced from Fordism.