Ford Motor Company: A Comprehensive Analysis of Leadership and Labor

This report provides an in-depth analysis of the Ford Motor Company, examining its historical context within the automotive industry, which was initially dominated by the United States but later saw shifts in global leadership. The report focuses on Henry Ford's contributions, including his establishment of the company and his innovative approach to vehicle production, making cars accessible to the average American. It further explores Ford's leadership, his initiatives to address labor issues, such as increasing wages and implementing a five-day work week, and his stance on labor unions. The report also delves into the labor problems faced by the company, the impact of Ford's welfare capitalism, and the challenges of the workforce. Overall, the report offers a comprehensive understanding of Ford's impact on the automotive industry, leadership strategies, and labor relations.

Introduction
The automobile industry is defined as a group of companies that manufacture the motor vehicles.
The automobile industry was first established in 1890’s with many manufacturers who were
considered as an inventor in the horseless carriage. The United States of America was known as
the manufacturer of the horseless carriage. In 1929 there are more than 32 million automobile
industries. 90 percent of the vehicles were manufactured by the United States (Zarbo et al. 2015).
After the Second World War, 75 percent of the production was created by the United States in
the world. It is seen that the United States cannot enjoy power for a long time. Japan took over
the supremacy in the year 1980. In the year 1994 the United States of America attained back the
supremacy and also there are many other countries that are associated with it (Gindin 2015). The
automobile industry has been the biggest industry globally, before the proof which is taken into
consideration by the industry of information technology. There are many high and low points
which are faced by the company. The industry gives a proper knowledge of experience
concerned with the leadership and learning. There are many methods to solve the issues
concerned with the workforce that explains the rules and regulations among the employees. The
industry gives knowledge about the management and the leadership issues (Cutcher-Gershenfeld,
Brooks and Mulloy 2015).
Ford Motor Corporation
The ford motor Company has been established by Henry Ford. He was considered as an
American industrialist. Henry Ford introduced vehicles that are reasonable for the white collar
class Americans. Henry ford has changed vehicles that were considered as a luxury product in
the life of American’s. The automobile has not been invented by him. He was known as the
proprietor of the ford company and also one of the wealthiest men in America. The career of ford
started as an engineer in the Edison illuminating company (Johns and Gratton 2013). He was
given the post of chief engineer in the company. He tried different experiments with the gasoline

engine and created ford quadricycle. He made many investigations with that cycle and
improvement is made upon it. The organization tried different sort of vehicles. The organization
constructed a 26 horsepower engine automobile. The cars having the model T and model A have
an extraordinary leap towards the organization. The organization came into existence in the year
1903 when Malcomson and various investors connected with the organization (Gindin 2015).
Model T is a ford car presented by the company. The attributes of the car is that the steering is on
left, engines, four cylinders and there are two spring suspension. The car came at reasonable rate
of $825 consistently. The cost of the car feels as the years passed by. This was the first fruitful
venture of the ford Motor Company. With the progression of time, Model T of the car became
outdated. In the year 1926, the organization started making another model of the car. The new
model that is model A appeared in December 1927.
The organization has different labor issues. The expansion in the production of cars solves the
work issues and keeps peace at the workplace that was the result of the organization capable
leadership. Henry Ford never had faith in the accountant. Due to this the ford company never got
examined during his rule (Carlino 2014).
Initiatives taken by Ford
Henry Ford has taken into consideration various activities to take care of the issues concerned
with the laborers. He trusted that paying appropriate wages to laborers would enhance the
productivity level of the laborers. At one point he even multiplied the wages of the laborers. He
introduced five days working which make work life balance of the employees. The organization
could accomplish better creation from the representatives after the changes made by henry ford.
By taking into consideration the labor union, he analyzed that ford was against it. Ford trusted
that the union of labor gives direction towards the wrong way (Rodgers 2014).
During the First World War, the ford company went into aviation business. Ford began Building
liberty engines for the plane. The best aircraft by the company was Ford 4AT Trimotor which
was also called as “Tin Goose”. The Plane was constructed from the alloy which is named as
Alcad. The main characteristic of the alloy was that it is resistant with the rust of aluminum. The
organization procured the stout metal airplane company after the completion of the First World
War (Janoski and Lepadatu 2014).

Labor Problems
Henry Ford has worked a lot to enhance the efficiency and the productivity of the employees.
The organization began employing about 300 men to cover up the requirement which is available
in the organization. Henry Ford had faith in welfare capitalism. He outlined a great deal to
enhance the efficiency of the workers (Snow 2013). He used to make effective contracting so
that the best workers can be appointed for the company. In 1914, the wages of the specialists
changed to $5 every day. The rates were twofold for the majority of the laborers. With many
laborers the wages was doubled, the choice was also beneficial for the organization. The
occurrence occurred when there has been an enormous turnover by taking into consideration the
entire Detroit (Reisch and Andrews 2014).
Because of the move the best mechanics of the nation rush over at the ford motor corporation.
The organization got the best mechanics and the laborers from the organization that ended up
being the best resource of the organization. Thus, the efficiency of the organization got raised.
The workers rushed at the organization which minimized the training cost. The declaration was
made on 5th January 1914. Detroit was an area giving the high wages to the workers. After, the
declaration made by the ford, the alternated organizations in Detroit confronted many work
issues. The expansion in the wage has two direct effects on the laborers. The expansion in the
wages of the car made the laborers of the organization wealthier. The laborers could now manage
the cost of the cars they create without anyone else (Lee 2015). This has been an extraordinary
inspiration for their work. The creation from the laborers expanded by virtue of this change.
Above all this, the enhanced wages of the laborers end up with sharing the benefit of the
organization among the workers. The worker advantage was the primary issue towards the
development of the organization and also the expansion in the wages among the laborers came as
a reward to the workers. The expansion in the wages was imparting benefit to the organization
representatives. The sharing of the benefits turned into a piece of the employees rewards.
Employees were qualified revenue driven sharing in the event that they had labored for a half
year in the organization. The dedicated workers with the great conduct are regularly given the
rewards and benefits. The laborers were being glared that they are dependent on drinking, betting
and others. In any case, every one of these issues constituted invasion into the private existence
of the employees. The attack into the private lives of the employees was disputable and it is seen
that ford moved down with the reward system.