Men Who Built America is a series about successful people whose industrial innovation influenced much their country and brought them a world-wide popularity. Most Americans believe that Henry Ford invented the automobile. Ford’s merit in that he created mass production. He invented the automobile business. When the businesses became economically organized, there appeared the demand for the managers, so that XX century became the time of management. Henry Ford built the largest industrial production of the early XX century and earned 36 billion dollars, its principles had a tremendous influence on public life in the United States. He sold almost 16 million cars, "Ford T" line has become a matter of routine and necessity. Ford did not create the demand for his cars, but on the contrary, he created conditions for that demand.
In 1887, Henry Ford designed the model of his first engine (Entrepreneur). He read a bunch of books on mechanics, constructed engines, trying to adapt it to a motor bike. His colleagues laughed at him and tried to persuade Ford that the future is on complete dependence of the electricity. It was the time when Ford first met Thomas Edison, told him about his work and shared his doubts. Edison was so interested in this engine invention that no one could then reassure Ford to give up his experiment. In 1893, Ford assembled his first car called quadricycle or four-wheeler (Entrepreneur). This invention was taken into account by some serious companies who offered him to start car production and connect his life to a serious deal. After considerable hesitations, Ford decided to devote his life to producing cars. There were found immediately some companies who agreed to support Ford, but they were against mass production. Ford could not accept this idea, so he decided to set up his own company.
His company Ford organized as he wanted. He chose the motto that consisted in the following: if anyone refuses to have Ford car, it is only Ford’s fault. Priority of his production consists in the simplicity, reliability, easiness and mass use of a product. From the very beginning, Ford created a car for everyone. He avoided luxurious design and care not really much about the prestige of his brand. Ford state tree financial principles for his car production. Ford did not involve other capital, performed all trades by cash, and all the income was invested again in car production. Ford believed that the dividends are eligible only for those who participated in the process of car production. All the efforts of this work were focused on the development of a universal model of a car. Every model of Ford cars has its own name and history. The most popular one is “Ford-T” and its most characteristic feature is simplicity so that even a child can drive it.
Ford’s ideal car had to be simple, easy and cheap so everyone could afford it. No one believed him and accused him of the utopian idea. But Ford continued fighting for his ideal. He worked out new approaches in the financial, staff and production policies that gave him an opportunity to provide many people with work places and raise the popularity of his cars. For sure, Ford paid much attention to his staff. When recruiting new employees, Ford was strongly fighting against accepting competent people. Because of this he was always accused of ignorance. Once Henry Ford was offended by the Chicago newspaper for being ignorant and sued. He believed that everyone should start working from the bottom step of the stairs. Ford never took into account the past of a person because he wanted to work with a person, but not with the past.
Ford opposed the professional associations of workers. According to Ford, they were under too significant influence of some leaders who, despite good intentions, eventually brought more harm than good. Many of them wanted to reduce productivity in order to reduce unemployment. Ford perceived this as a contradiction, since, in his view, no economic prosperity was possible without the production efficiency. In addition, Ford believed that the heads of the trade unions were led by the perverse. At the same time, he had no doubt that reasonable managers, on the other hand, will be motivated to correct behavior, as this course of action will help to increase their own profits. However, Ford admitted that some leaders are too poorly versed in management. According to him, over time, good managers are able to resist the attacks on both the left (by the Socialists), and right (by the Reactionaries), and will be able to form such a socio-economic system where neither bad management nor bad unions could find support.
Ford Motor became the latest automaker in Detroit, recognized by the United Auto Workers. In April 1941, a sit-down strike was organized by the union. Ford's reaction had no detrimental effect on the company (Entrepreneur). However, his wife Clara persuaded the head of the company to change its position.
In search of lower production costs Ford drew attention to the fact that the workers spent much time searching for and delivering of materials and tools. January 12, 1914 Ford reduced the minimum wages to $ 5 a day and the working day to eight hours (Entrepreneur). The ambition of every employer would have to be to pay higher rates than all its competitors, and the desire of workers to facilitate the practical realization of this ambition.
The consequence of this policy resulted in Ford’s conflict with shareholders. The company grew rich, and shareholders led by the Dodge brothers hoped to receive dividends. Ford scornfully compared them to the creators of ladies' fashion. Ford followed another principle that each part of the car must be removable so that if needed, it can be replaced by a more modern one. Benign machine should be as durable as a good watch. In practice the idea of cheap car for everyone became utopian. His company faced crisis.
In 1920, having sold all that was not related to the automotive industry (Entrepreneur), Ford decided to reform the factory. Ford came up with the motto that less administrative spirit in business life and more business spirit in the administration can bring success. This meant that the company lacked the organizational scheme and horizontal communication between departments.
Purely utilitarian approach to management was called "Fordism". He perceived the company as a working communication between people whose main task is to work. One department does not need to know what is happening in the other. In his company, he left only the lower-level managers who were held accountable for their departments produced products. No meetings and conferences were held. Overly complex organizational structure, according to Ford's view, led to the fact that it was not clear who was responsible for what. Everyone should be responsible for the work entrusted to him.
Ford pointed out that the work should be treated seriously. Everybody should put a goal to do a good job and get a good reward for it when the work is finished. Ford was a strict master, but truly loved his job and took care of his co-workers. He opened a school, a hospital, started the tradition of collective picnics and dinners. He was strict but fair father drummed into the heads of his loafers the old-fashioned truth. If it were in his power, "Ford T" would be produced at all times. When it was necessary to replace it in 1927, Ford closed the production for six months. But it was too late, as the American automobile industry has become the leader of General Motors (Entrepreneur).
It is an open question how such people as Henry Ford can become so successful. The main point concerns their way of thinking. All successful people perceive the world in a different way. They strongly believe that they do everything well. They have the goal and a clear plan of actions. Such people strongly believe that there is nothing impossible in the world and only a great deal of efforts can bring them success.
Works Cited:
Entrepreneur, Henry Ford: The Man Who Taught America to Drive. Growth Strategies, 2016. Web. 9 Apr. 2016.
