Was the $5 a day wage good for employees?
Ford Motor Company had just come up with a new strategy of increasing productivity and efficiency using the automated assembly line. This was a rather more demanding kind of job because it involved working at a particular point in the production system and doing the same task repeatedly. Ford realized that this significantly reduced the time for producing a single model T automobile from 12 hours and 13 minutes to just 1 hour and 33 minutes. He finally achieved his objective of delivering one thousand cars per day. For the employees, this kind of work that involved repetition and fatigue was far from the ideal work, especially at the initial daily wage rate. This prompted most of them to quit after a brief span with the company. Most workers felt that the compensation they got in terms of wages was insufficient to match their efforts at the factory.
However, on January 5, 1914, Ford introduced the $5 a day wage for the employees of the automobile company. I believe that this, in a way, was an incentive for the company’s employees. Their earnings were doubled from $2.50 to $5 a day while the working hours were reduced from nine to eight hours. This was a fair deal compared to what other competitors in the industry offered. This particular income meant a certain rise in the social class of these employees, and they could afford to better their living standards. At that wage rate, the employees also felt that their efforts were now properly rewarded, and as such, they valued their job. It also makes them value their jobs and try to execute their roles efficiently and properly. It made employees feel like valuable members of the company. It is always an employee’s wish to be rewarded proportionally in line with their efforts at their workplace. This is essentially why around ten thousand men showed up seeking employment just after the announcement. The subsequent reduction in turnover just went on to show how a significant proportion of the company’s employees valued their jobs and remained committed to them.
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Was it good for the Ford Motor Company?
The $5 a day strategy was good for Ford Motor Company. It not only reduced the worker turnover but also increased business generally. This came when the company needed a steady supply of labor to work at their demanding automobile assembly plant. The company had previously struggled with a high worker turnover ratio, affecting the production process. This was because most workers failed to show up after just a few days of working, citing exhaustive routines and demanding work as the main driver. The work employees did at the factory involved standing at one production point and carrying out the function repeatedly. Many of them believed they were not getting enough compensation for the kind of effort they put in. the adoption of the new wage system gave them a whole new perspective of the job. They now clearly became motivated to work at the factory. According to them, the company had its best interest at heart. As such, productivity and efficiency increased, and so did the revenue of the firm.
The adoption of this new strategy solved Ford's worker turnover problem. It now made more workers want to work for the company. It gave them an edge over its competitors, who were skeptical that these higher wages would devastate the industry. In reality, it revolutionized how workers get paid. Initially, Ford had hired approximately 52,000 men to maintain a workforce of only 14,000. These new workers needed a costly break-in period which only impacted negatively on the company. There were instances when some workers walked away from the production line, quit, and went looking for temporary employment elsewhere. This meant that the line had to stop, and the production halted. The delayed production and increased cost deterred Ford from selling the cars at lower prices. There was a need for drastic and effective measures if he was to keep up the car production and reduce the cost per unit.
By ensuring that he paid higher wages than his competitors, Ford ensured that no employees were leaving his firm for other industry players. This made the employees feel like they have a better deal, and this more likely made them turn up on time, sober, and work diligently. This was one of the problems that Ford was trying to solve, and he did just that. In the end, increased efficiency and productivity led to increased sales of the Model T automobile.
Was Ford’s sociology department and requirements for the $5 a day wage ethical?
I think Ford's sociology department and the requirements for the $5 a day were quite unethical. This is in the sense that it violated the privacy of the employees at the very core. It was not proper for Ford to go ahead and authorize the department's inspectors to carry out random inspections and check whether the employees are living in a certain way. There was a predetermined way of life that Ford expected his employees to uphold. Certain social requirements were quite necessary for him. As such, he made sure these inspectors checked the houses of these employees to make sure they met these criteria.
An employee who failed inspection for the first time was allowed time to make amends. Moreover, additional wages were withheld from them. This is unthinkable in the modern age. An employee who works needs to be reimbursed fully in line with their original contract. It is unethical to withhold any wages from an employee because they have failed to pass some social test. Even worse, those employees who failed inspection for the second time were fired. This kind of treatment is unfair and unacceptable. An employer need not impose their way of living on their employees outside work. As long as an individual is working correctly and carrying out their duties well, their life outside work should be autonomous. It is only ethical that way.
