Premium Essay

Henry Ford Management

In:

Submitted By foxlobo123
Words 521
Pages 3
In 1891, Ford became an engineer with the Edison Illuminating Company in Detroit. This event signified a conscious decision on Ford's part to dedicate his life to industrial pursuits. His promotion to Chief Engineer in 1893 gave him enough time and money to devote attention to his personal experiments on internal combustion engines.
These experiments culminated in 1896 with the completion of his own self-propelled vehicle-the Quadricycle. The Quadricycle had four wire wheels that looked like heavy bicycle wheels, was steered with a tiller like a boat, and had only two forward speeds with no reverse.
Although Ford was not the first to build a self-propelled vehicle with a gasoline engine, he was, however, one of several automotive pioneers who helped this country become a nation of motorists.
After two unsuccessful attempts to establish a company to manufacture automobiles, the Ford Motor Company was incorporated in 1903 with Henry Ford as vice-president and chief engineer. The infant company produced only a few cars a day at the Ford factory on Mack Avenue in Detroit. Groups of two or three men worked on each car from components made to order by other companies.
Henry Ford realized his dream of producing an automobile that was reasonably priced, reliable, and efficient with the introduction of the Model T in 1908. This vehicle initiated a new era in personal transportation. It was easy to operate, maintain, and handle on rough roads, immediately becoming a huge success.
By 1918, half of all cars in America were Model Ts. To meet the growing demand for the Model T, the company opened a large factory at Highland Park, Michigan, in 1910. Here, Henry Ford combined precision manufacturing, standardized and interchangeable parts, a division of labor, and, in 1913, a continuous moving assembly line. Workers remained in place, adding one component to each automobile as

Similar Documents

Premium Essay

Henry Ford

...Henry Ford: Changing Management xxxxxxx xxxxxxx Table of Contents Page Introduction 1 Background Information 1 The Mass Production of the Automobile 2 Labor Innovations 4 Ford’s Management Style ...............................................................................................................5 Conclusion 7 References 9 Introduction “More than a carmaker, more than an innovator, his company’s centennial is a reminder of Ford’s vast influence” (Wicks 2003). This line here is how many people perceived Henry Ford. Ford started one of the biggest car companies and changed the business world with the start of this company. Ford is said to have started the Modern Age with his production of motor vehicles. Ford changed how factories produce their products with the start of the assembly line. The assembly line helped Ford be the first person to ever mass-produce a product. This was unheard at that time and changed the way companies produced their products. Not only did Ford help change the way products are produced, but how employees are paid. Ford was the first to double his employees pay and it made companies begin to change the way they viewed their employees. Ford was able to make a successful company that was on top of the automobile industry for many years and changed the way the industry functioned as a whole. Background Information Henry Ford was born in Township, Michigan to William...

Words: 2616 - Pages: 11

Free Essay

Henry Ford

...The  Leadership  of  Henry  Ford     "The  great  need  of  the  world  has  always  been  for  leaders.  With  more  leaders  we  could  have  more   industry.  More  industry,  more  employment  and  comfort  for  all."  –Henry  Ford   Introduction     Henry   Ford   was   the   creator   of   one   of   the   largest   automobile   manufacturing   companies,   influencing  society  in  a  number  of  ways  and  forever  changing  the  face  of  the  auto  industry.  One  of  the   reasons  for  his  success  was  the  high  priority  he  placed  on  his  employees’  satisfaction.  While  Ford  had   much   strength   he   also   had   weaknesses   that   held   the   company   back   and   threatened   to   destroy   it   at   times.   Ford   was   a   notable   member   of   society   and   a   great   peace   promoter.   Ford’s   business   style   and   leadership  skills  throttled  him  to  success.     Background       Henry   Ford   was   born   in   1863   to   farmers   in   Dearborn,   Michigan.   Ford   grew   up   living   on   the   farm   and  attending  school,  neither  of  which  he  was  satisfied  with  (“Henry  Ford:  The  Innovator”)....

Words: 1842 - Pages: 8

Free Essay

Biography of Henry Ford

...Henry Ford was an American industrialist, best known for his pioneering achievements in the automobile industry. From humble beginnings he was able to create a company that would rank as one of the giants of American and World industry long after his death. There is no doubt that Henry Ford was a successful business man. The Ford Motor Company, Henry Ford's legacy, has left its mark on every continent in the world. However, Ford didn't gain his success solely on his innovation in the automobile industry. He was a friend to the middle class public as well as the workers in his factories. For this he was rewarded with financial success by the same people he looked out for. Moreover, he repeatedly gave back to society through donations, philanthropic foundations, and the creation of organizations that would help to educate and benefit the people. Henry Ford was a man who gained world-wide business success through his innovative ideas, brilliant management skills, and down-to-earth tactics. Henry Ford was born on a farm near Dearborn, Michigan, on July 30, 1863, and educated in district schools. He became a machinist's apprentice in Detroit at the age of 16. From 1888 to 1899 he was a mechanical engineer, and later chief engineer, with the Edison Illuminating Company. In 1893, after experimenting for several years in his leisure hours, he completed the construction of his first gasoline engine. His first automobile was completed in 1896. The body was a small crude...

Words: 326 - Pages: 2

Premium Essay

The Success Stories of the Pioneer, the Giant Killer and the Current Champion of Automobile Industry

...Chandran V B14071 BM-B Contents Contents ....................................................................................................................................................... 1 Introduction .................................................................................................................................................. 2 Henry Ford – The man who divided the notion of modern economic and social system into Fordism and post-Fordism ................................................................................................................................................. 2 Assembly Line ........................................................................................................................................... 3 Vertical Integration ................................................................................................................................... 4 Profit Sharing ............................................................................................................................................ 5 General Motors – The David who beat the Goliath (Ford) ........................................................................... 5 Reorganization of GM into divisions with decentralized responsibility and centralized control ............. 7 Range of products with prices made affordable by financing .................................................................. 7 Introduction of new models annually .........

Words: 4328 - Pages: 18

Free Essay

Unionization of Ford Motor Company

...Unionization of Ford Motor Company Human Capital Management 531 February 27,2012 professor: Ricky Owen Unionization of Ford Motor Company Ford Motor Company Background At the beginning of the century, cars were merely toys that only the rich could afford and were very complicated to drive. Henry Ford did not invent the automobile, he created a car that every typical, average American would be able to afford. Henry Ford was able to produce affordable cars because he introduced the idea of the assembly line to manufacturing the cars. The efficiency in which the cars were manufactured allowed Henry Ford to decrease the cost of the Model "T" from $825 to $575 within four years of the cars debut. As a result, Ford's share of the market was 48%. Cars were assembled by skilled men who performed the same task over and over again from piles of parts. The assembly line was so efficient that the time to create a car reduced from twelve and a half hours to six hours. Legal issues and obstacles that Ford could encounter: Ford Motor Company is an extremely large corporation that must keep, UAW (United Auto Workers), a very large union content. With the collapse of the economy in 2008, many workers and unions have had to compromise with larger companies in order to keep these companies from moving their production outside of the United States. Ford has agreed to "in-source" jobs from Mexico, China, and Japan...

Words: 1197 - Pages: 5

Premium Essay

Henry Ford Analysis

...MGNT 4110 Leadership in Organization Leader Analysis Paper: Henry Ford As stated many times, leadership is a process towards achieving a goal. That process requires people who are interacting in the effects of influence. Leadership also requires one primary factor, which is the leader who is doing most of the influencing. The people that a leader influences are considered followers. Many question the view of leadership and how people can interpret if a leader is effective or the proper candidate for the environment or organization he/she is leading. Not all leadership is positive. This paper focuses on Henry Ford and his approach as a leader. Henry Ford can be considered the brilliant and innovative individual who founded the Ford Motors Company that we know today. Ford Motors Company is an automobile manufacturing company founded June 16, 1903. Henry Ford’s idea was to create a reliable source of transportation that fit the needs of the consumer but could also be built in the most effective and efficiently manner. Ford conceptualized a way to mass produce automobiles through his creation of the assembly line.   Henry Ford grew up in the Dearborn, Michigan area on a prosperous family farm in the early nineteenth century.  He became an apprentice machinist at sixteen.  Henry did not completely turn his back on the family farm and provided periodical assistance while he worked with steam engines and on farm machine repair.  His talent for engineering and machinery lead him to...

Words: 1588 - Pages: 7

Premium Essay

Culture Len

...lens Ford went through a hard time, not just because of the outside gloomy economics, but also the pressure of a dysfunctional, often defeatist culture. In Ford’s long business history, culture is not constant; it evolves, the business culture had been changed generation by generation in the economic progress and globalization. Both of essence and dross has been passed down in a grown bureaucracy, where people lost their innovation and structure is messy. The new chief executive of Ford Motor Co., Alan R. Mulally was taking a culture revolution in this giant machine in order to pull it out of the deep mud. Organization values • Pioneered modern management techniques Period 1: Ford is the birthplace of the assembly line and home of the celebrated Whiz Kids, which highly increase the efficiency in the production and copied by the other companies. Period 2: After 1960s, Ford fell into a reverse way and has degenerated into a symbol of inefficiency. Right now, it has four parallel operating units and the company has more than 30 engineering platforms worldwide, each with its own costly bureaucracy, factories, and product development staff. Period 3: Mulally took a big step and would like to reduce the level of complexity. He wants to get that number down to five or six platforms, similar to Honda. More importantly, Ford tries to eliminate all of its unnecessary duplication. • Cooperation and efficiency Period 1: After assembly line been introduced to the world, Ford impressed...

Words: 825 - Pages: 4

Premium Essay

Ford Management

...Ford Management Nancy Mohren MGT/230 February 12, 2014 George Olson It is July 30, 1863 and the birth of one of the most famous people known is born into this world kicking and screaming. His name is Henry, and he resides in Dearborn, Michigan to a prosperous farming family. In 1879 at the age of 16, he leaves for the nearby town of Detroit because he dislikes school and farming. He worked as a machinist's apprentice where he learned valuable knowledge that allowed him to leave his first job, go back to his home roots in Dearborn, and began part-time work for Westinghouse® Engine Company. He also spent his time working in a small machine shop he put together on the land of his family. This is Henry Ford, and he married in 1888 to a woman named Clara Bryant, which required him to get a better paying job. He went to work as an engineer for a company called Edison Illuminating Company and became Chief Engineer in a short space of time. This promotion required him to be on call 24/7 and during his down time he began experimenting with internal combustion engines. While working for the Edison company, he created the Quadricyle the first "horseless carriage" that ran on gasoline and rode on four bicycle wheels (Scott Allen, 2014). Ford began his efforts to establish a sustainable manufacturing business while still employed by Edison Illuminating and succeeded in 1903. In this year, he convinced 11 men to invest along with his...

Words: 1231 - Pages: 5

Free Essay

Henry Ford: America's Welfare Capitalism Pioneer

...Julie Cravey Professor Jacquelyn Veuleman Management 1115 Leadership 18 September 2015 American Welfare Capitalism Pioneer As I researched literature on the subject of leadership, Henry Ford stands out as one of America’s notable leaders. Born to an Irish immigrant father and American mother of Belgian descent, Henry Ford turned his back on the lifestyle of a farmer and sought employment in Detroit in the machine shops when he was 16 years old. Ford’s leadership style could best be described as Transformational leadership. Our textbook states, “all transformational leaders are charismatic, however, not all charismatic leaders are transformational1.” Common characteristics of a transformational leader include having a clear vision of the future, the verbal skills needed to share their vision, the ability to project confidence to others in the ability to attain their vision, and the personalized leadership to set and achieve goals needed for the organization’s success. Henry Ford’s vision of a car for every American demonstrated his understanding that his company would be far more successful if every citizen were able to afford his vehicles, instead of only being available to the wealthy few. To this end, he introduced mass production in America via the moving assembly line, and offered higher wages for his employees. This practice of inexpensive production with high worker pay credited to Henry Ford is known as “Fordism”2. He understood that breaking down complex...

Words: 1461 - Pages: 6

Premium Essay

Henry Ford Leadership and Short Bio

... * Born in Dearborn, Michigan on July 30th, 1863 * Grew up on a prosperous farm * Quickly became interested in engineering * At age 16 Ford left home to look for work in Detroit. * First job was as an Engineer with the Edison Illuminating Company. First Inventions * Within two years Ford was chief engineer at Edison Co. * Using the money from his increased salary Ford began working on first invention, the quardricycle. * During his work on the quardricycle Ford formed a partnership with William H. Murphy, they were to work very well together in the future Ford Motor Co. * After his earlier inventions and several failed attempts at private business, in 1903 Ford created the Ford Motor Company, becoming its vice-president and chief engineer. * Not an instant success, at first only a few cars were made a day. Decision Making Widely noted for his dictatorial-style of management—he had a hand in most major decisions at the company and is said to have even monitored employee's activities outside of work—Ford was resolute in his vision.  When investors wanted him to build a car for the wealthy driver, Ford thought that was the wrong way to go.  When Wall Street balked at the company's move to increase workers' wages to an average of $5 a day and institute an eight-hour workday, Ford knew that he wasn't engaging in a charitable gesture but rather an initiative to retain employees and keep his factories humming around the clock with three...

Words: 531 - Pages: 3

Premium Essay

Ford N Taylor

...Student Name: Zulqarnain Aslam. Student ID: VSS31073 Activity 1: Ford and Taylorism At the beginning of 20th century, Frederick Winslow Taylor give a concept of Taylorism, which lead to an important breakthrough s in business practice. Taylor’s idea gave the concept of advance methods of mass production and structural organization. At the same time, a prominent businessman Henry Ford started implementing the scientific management theories in his automobile industry. Ford named his car from alphabet A to S. His most famous car was model T, whose production was started in 1908. By implementing principles of scientific management, Ford Motor Company successfully manufactured over 15 million models of T series between 1908-1927. Ford’s effort decreased the cost of production, which ultimately lead to low prices of car in market. This was very first attempt to apply scientific methods in engineering processes and in management. Henry Ford based his assembly line in three simple principles. a. Planned, Organized and Continuous progression of services through the shop b. Delivery of work. c. Scrutiny of operations in to their basic parts. This was totally Henry’s effort that leads to innovation of entirely new discipline, industrial engineering and scientific management. According to Taylor, factory management task was the best way for worker to do the job, by providing them proper tools and trainings, and incentives on outstanding performances. Taylor divided the work...

Words: 561 - Pages: 3

Premium Essay

Pm587

...Memo To: Senior Management From: Portfolio Management Team Date: September 27, 2011 Re: SBU Proposal Industry Background Ford Motors Corporation was started by Henry Ford. Born in Wayne County, Michigan, in an area that later became Dearborn, on July 30, 1863, Henry Ford was the oldest of six children. In April 1888, Ford married Clara Bryant, a local girl and the foster child of—like Henry—Irish immigrant farmers. In 1893, his only child, Edsel, was born. Success soon came to him as he took a position in 1891 as an engineer at the Edison Illuminating Company and fairly quickly climbed the ranks. With his love for the outdoors and rural values, Ford might have easily remained in agriculture but something even stronger pulled at Ford’s imagination: mechanics, machinery, and understanding how things worked and what new possibilities lay in store. In the 1980’s, he focused particularly on internal combustion engines. Henry Ford called his first vehicle the Quadricycle. It attracted enough financial backing for Ford to leave his engineer position at Edison Illuminating and helped found the Detroit Automobile Company in 1899. The company faltered for a variety of reasons, and in 1901 Ford left to pursue his own work again. Later that year, the Henry Ford Company was born, but Henry Ford himself stayed with it only a few months. He left in early 1902 to devote more time to refining his vehicles. Ford recognized that with the right techniques, cars could be made affordable...

Words: 2456 - Pages: 10

Premium Essay

The Ford Motor Company

...Abstract Ford Motors used to be a prominent automobile company in the past. The company is on the verge of bankruptcy because of unexpected/unusual expenses incurred in the form of changes in investment and extinguishment of debt liabilities. The company should devise a policy that curtails the cost of sales, particularly, structural cost. Ford needs vast managerial and structural changes. The company needs to revise its price patterns, designs and make new and attractive products for the ultimate user, mainly, middle-class groups. Ford also needs expansion in Europe and Mexico. Keywords: Ford motors, cost analysis, microeconomics, demand, recommendation Introduction Purpose Microeconomics is that the branch of economic science that analyzes the behavior of individual shoppers and corporations to do and perceive the decision-making method of each business and households. Economics is concerned with the interaction between individual consumers and sellers also because the factors that influence the alternatives created by both consumers and retailers. Especially, economics focuses on patterns of providing and demand and, therefore, the determination of worth and output in individual markets. The aim of this paper is to clarify however economics influences the Ford Motor Company. History Henry Ford was born on June 30th, 1863. Ford saw his first car when he was 12 years old. Henry and his father were riding into Detroit during that time span. At...

Words: 2272 - Pages: 10

Premium Essay

Internal and External Factors

...and External Factors Kelley Yiannakis XMGT/230 July 20, 2014 Dr. Tia Sheppard Internal and External Factors The process of management is working with people and resources to obtain an effective way to achieve goals. To be able to achieve goals there has to be an effective way with use of minimal waste of resources, and that is to make the best possible use of money, time, materials and people. (Bateman, T. S., & Snell, S. A. (2011). Within the process of management there are four functions planning, organizing, leading and controlling, which have many factors that impact them. The four functions have key components that are external, internal, innovation, globalization, technology, diversity and ethics. The main tool mangers use out of all of the four functions is organization, in order to maintain control you have to have organization. The one thing that affects business today is the economy, you may not be able to make consumers buy a product to improve the economy but you can promote the product to help improve it. The cost of many things have increased over the years especially in the automotive industry, back in 1896 a man by the name of Henry Ford built the first gasoline powered vehicle. In the 19th century the citizens of the United States couldn’t afford a whole lot, let alone an automobile. Over the years since Henry Ford build the first vehicle he worked for the Edison Illuminating Company and planned to open his own manufacturing business. He never gave...

Words: 751 - Pages: 4

Premium Essay

The Practice of Management

...THE PRACTICE OF MANAGEMENT BY PETER DRUCKER The introduction is titled “The Nature of Management” and features three chapters. The first chapter is titled “The Role of Management”. The first two sentences in this chapter might be the best definition of a manager anyone has ever written. Drucker states that “the manager is the dynamic, life-giving element in every business. Without his leadership the “resources of production” remain resources and never become production”. To me this sums up what being a manager is all about. Later in the chapter he says “from the peak there is only one easy way to go: downwards. It always requires twice as much effort and skill to stay up as it did to climb up”. A powerful statement, that many do not realize. The second chapter, titled “The Jobs of Management”, Drucker talks about how the jobs of management are usually not known by people within the company. People know who the managers are but aren’t quite sure what they do. He breaks down what a managers’ job involves into a couple of key areas. The first of which is “economic performance”. With this Drucker say that management must always put economic performance first in every decision and action they make because this will justify their existence. Other areas of this chapter focus on management functions which include: their first job is managing a business, managing managers and managing both worker and work. The third chapter is called “The Challenge to Management”. This chapter focuses...

Words: 2971 - Pages: 12