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Discuss the validity of this statement, supporting your rational with research studies and case examples of contemporary successful or unsuccessful organisations that have either supported either fordistic values or other new structures.

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Introduction

"In their analysis of emerging organisational forms, organisational theorists have tended to use the fordist industrial model as the basis for comparison. new organisational forms are said to depart from the fordist reliance on a rigid division of labour and standardised job tasks because this form of organisation can no longer meet the demands of a rapidly changing economy and market" (Jaffee,2001:154) Discuss the validity of this statement, supporting your rational with research studies and case examples of contemporary successful or unsuccessful organisations that have either supported either fordistic values or other new structures. When people hear the name Henry Ford they immediately think of the man who invented the automobile, but his influence on the American work structure will last forever. Ford changed the approach to business and paved the way for today's entrepreneurs. Ford helped develop the infrastructure for automobiles, including roads and petrol stations. He also set a minimum wage for his workers, shortened the working day from 9 hour shifts to 8 hour and created a successful assembly line for motor vehicle mass production. Ford began industrial mass production in his factories, but his interest lay away from mass production, instead he based his recipe for success on mass consumption. ...read more.

Middle

Henry ford's ideal types of fordist production system included using fixed and dedicated machines in individuals work, rather than turning the employee into a machine. With Taylor trying to prove to the world that there was a science to management and that the quickest way was the best way, he attacked the incompetence of managers for their inefficiencies in running the railroads and factories. Using time and motion studies, Taylor achieved productivity increases of up to 200%. His thoughts were echoed by others: during a 1910 interstate commerce commission hearing Louis D Brandeis argued that US railroads could save a million dollars a day if they introduced scientific management into their operations. Taylor showed the world that the methodical and scientific study of work could lead to improved efficiency. He believed that by defining clear guidelines for workers many improvements could be made to the production of goods. One other theory to be compared with fordism is Marxism. Karl Marx was a German scholar who lived in the nineteenth century, who believed that he understood the reasons for unjust treatment in the world better than anyone else. He believed two classes were formed with regards to affluence. These classes were the people whom could afford to buy businesses and those who couldn't and were therefore employees rather than employers. ...read more.

Conclusion

However their recent decrease in profits may indicate that people no longer wish to speak to unskilled workers as sometimes poor quality service arises from the inability of staff to problem solve. Although ford aimed his theory at industrial type work rather than that in the tertiary sector, many of his ideas will be used in all types of business for years to come. The idea of increasing consumption rather than concentrating on increasing production showed a completely new way of going about profit maximisation and has helped companies to realise the importance of consumer satisfaction and value for money. The main difference between the market today and that of the time of Henry Ford is the lowering importance of class boundaries. In ford's day people were frightened too ask too many questions and accepted anything they were told by people of power, such as doctor's without any query. Now people prefer to understand the processes behind matters which concern them. This means that instead of dehumanising staff the opposite most occur. People need to be more down to earth in their approach to business and be willing to accept the fact that consumers want explanation, before handing over their hard earned cash. The` statement that ford's theories may no longer therefore be appropriate in today's market may in some respects be accepted, but the success of McDonalds in the last 50 years has proved that it is not wholly true. ...read more.

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