Ford 5 Per Day Wage Case Study
The believed reasoning behind Ford’s $5 per day wage policy was that he realized that he should pay his workers sufficiently large sums to that they could afford the products they were making – so that the workers can be the company’s best customers. The workers that got more pay needed to keep healthy and neat lifestyles and if they were younger than twenty-two they must be married – this allowed for healthy habits of workers at both the home and the workplace. Ford’s $5.00-a-day policy helped the company achieve record profits. Some negative results came from competitors who thought the $5 daily wage was that they claimed that Ford just did this in order to get his workers to work harder and he used this as a bribe – whether it was a bribe
or not though it gets your workforce thinking they’ve got a good deal (because compared to other labor workers they do indeed have a good deal) and if the workers think they’ve got a good deal then they’re more likely harder. This produced higher production numbers. Companies also claimed that this would make him loose millions of dollars a year. There is an element of Fordism that could be classified as standardization where workers were treated the same and did the exact same tasks daily that included strict criteria for working. Workers understood that they were trading their life and privacy for higher wages, but during those times there was economic insecurity, therefore, workers were more likely to agree with the terms in order to get paid more. Dissatisfied workers were less efficient, so Ford needed to make a change. It is however argued that buying the products was not the reasoning and that it was nothing at all to do with creating a workforce that could afford to buy the products. Rather, it was to be able to have workers work for a longer period of time so that time wasn’t wasted hiring new workers and training them. Therefore, higher wages were necessary, Ford realized, to retain workers who could handle the pressure and the monotony of his assembly line.
or not though it gets your workforce thinking they’ve got a good deal (because compared to other labor workers they do indeed have a good deal) and if the workers think they’ve got a good deal then they’re more likely harder. This produced higher production numbers. Companies also claimed that this would make him loose millions of dollars a year. There is an element of Fordism that could be classified as standardization where workers were treated the same and did the exact same tasks daily that included strict criteria for working. Workers understood that they were trading their life and privacy for higher wages, but during those times there was economic insecurity, therefore, workers were more likely to agree with the terms in order to get paid more. Dissatisfied workers were less efficient, so Ford needed to make a change. It is however argued that buying the products was not the reasoning and that it was nothing at all to do with creating a workforce that could afford to buy the products. Rather, it was to be able to have workers work for a longer period of time so that time wasn’t wasted hiring new workers and training them. Therefore, higher wages were necessary, Ford realized, to retain workers who could handle the pressure and the monotony of his assembly line.