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Evolution Of Ford Motor Company - Example Papers

Evolution Of Ford Motor Company

The Ford Motor Company led what has been called a revolution. Henry Ford restructured everything from the salaries of employees to the work ethic they demonstrated. He did numerous things that were considered absurd and unrealistic at the time. This included the introduction of the $5.00 work day, and with this the desire to control his workers lives. In a way he did this for the better of the workers and the better of the company. The $5.00 per day rate was not as dumb as people perceived it to be. In reality, it was the perfect thing to do.
Henry Ford gradually increased the wages of Ford Motor Company employees. His main objective in doing this was to motivate his employees into ...

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the company’s wage structure, developed an ingenious job-ladder system.
This innovative system allowed increased wages for the upper crust portion of the working core. These elite workers had incentives to work their way from the $2.34 minimum to over $4.00 a day. This was a wage increase of 13%! This system was developed to increase labor turnover and create a more stable and committed workforce.
This wage increase was copiously overshadowed by the increase to $5.00 a day just three months later. This pay raise was coupled with a reduction in work hours. Henry Ford replaced the two existing nine-hour shifts with a new nonstop rotation of eight-hour shifts around the clock. The new pay raise was part of a complicated system. The basic pay rate was to remain at $2.34. Workers could then reach a “wage” of $5.00 by earning a “profit-sharing” bonus. Workers could acquire this bonus on their paycheck regularly by meeting a few qualifications. They had to put in at least ...

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Evolution Of Ford Motor Company. (2006, August 31). Retrieved January 10, 2026, from http://www.essayworld.com/essays/Evolution-Of-Ford-Motor-Company/51636

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PAPER DETAILS

Added: 8/31/2006 01:56:29 PM
Category: American History
Type: Premium Paper
Words: 740
Pages: 3

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