A Detailed Examination of Leadership and Labor at Ford Motor Company

This report provides an in-depth analysis of Ford Motor Company, focusing on its historical context within the automobile industry and the leadership of Henry Ford. It explores Ford's innovative approach to labor practices, including the introduction of higher wages, reduced work hours, and welfare capitalism initiatives. The report examines the impact of these strategies on employee productivity, labor relations, and the company's overall success. It also addresses the labor problems faced by Ford and the evolution of its policies, offering insights into the challenges and achievements of Ford's leadership in the automotive industry. The report highlights the significance of Ford's contributions to workforce management and the broader implications for business leadership.

Introduction
The automobile industry is defined as a group of companies that take into consideration
manufacturing of motor vehicles. The industry first established in 1890’s with many
manufacturers who were the inventor in the horseless carriage. The United States of America is
known as the popular manufacturing of the horseless carriage. In 1929 there are more than 32
million automobile industries. 90 percent of the vehicles were invented by the United States
(Zarbo et al. 2015). After the Second World War, the United States created 75 percent of the
production which is concerned globally. It is seen that the United States cannot enjoy power on a
long time basis. Japan took over the supremacy in the year 1980. In the year 1994 the united
attained back the supremacy and also there are many other countries which are associated with it
(Gindin 2015). In 2012 the car models which were introduced is equal to 684, the company
attained the growth. The automobile industry has been the biggest business globally before the
approach which is taken into consideration of the information technology industry. 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 and also to take into consideration the guidelines
and the directions among the laborers. The historical background of the industry is an incredible
section which gives the knowledge of 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 are considered as a luxury product in the
life of American. The automobile is not 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 is started at

Edison illuminating company (Johns and Gratton 2013). He was given the post of chief engineer
in the company. He tries different things with the gas motor and created ford quadricycle. He
made many investigations with the cycle and improvement is made upon it. The organization has
tried different things with different sorts of vehicles. The organization constructed a 26 pull
motor car. The cars having the model T and model A have an extraordinary leap towards the
organization. The organization came into full form in the year 1903 when Malcomson and
various investors joined the organization (Gindin 2015). Model T is a ford car presented by the
company. The primary component of the car is that the steering is on left, engines, four cylinders
and there are two spring suspension. The car came at moderation 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 began 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 in the workplace that is the result of the organization capable
leadership. Henry Ford never has 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
influenced five days to work from seven days 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 in the wrong direction (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 is that it is resistant with the aluminum. The
organization procured the stout metal airplane company after the finish of the First World War
(Janoski and Lepadatu 2014).
Labor Problems
Henry Ford enhanced the state 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 state 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 beneficial
for the organization also. The occurrence occurred when there has been an enormous turnover by
taking into consideration 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 has 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 creations from the laborers expanded by virtue of this change.
Above all this, the enhanced wages of the laborers end up with the sharing the benefit of the
organization among his workers. The worker advantage was the primary issue towards the
development of the organization. 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. The
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 with

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.