Ford Motor Company

A car company led by Henry Ford.

1908-1914
Henry Ford’s production managers pioneered the development of the moving conveyor
belt. Thus, shifting the manufacturing practices overtime. Although the technical aspect of the
move to mass production contributed evident financial success, consequently, many human and
social problems arise.

Henry Ford
Coined the term “Fordism” for his new approach in motivating the workforce. This
approach is reducing the length of the workday from nine to eight hours and doubling the
minimum wage.

However, this led to an intense effort to control the resources (both human and material)
which his empire was built for.

Ford Lisp
Invented way of talking, a ventriloquist, a form of speech developed by those who
adapted to Ford’s system.

Because of Ford’s obsession with control he went so far as to the establishment of what
he called the Sociological Department. This brought him to enormous conflict with managers.
As a result many had left him, creating a growing number of rivals.

Sociological Department
Inspectors of this Department would visit employees home and investigate their habits
and problems and if the employee would exhibit behaviour contrary to Ford’s standard, they
were likely to be fired.

From the application of new management principles, Ford reaped huge gains in
efficiency. Of which Taylor was the one who elaborated these principles including Shop
Management (1903) and The Principles of Scientific Management (1911) so as to analyze
meticulously the basic tasks that must be performed and devising work systems that will allow
the organization to operate efficiently.