Fordism

Last updated

Fordism is an industrial engineering and manufacturing system that serves as the basis of modern social and labor-economic systems that support industrialized, standardized mass production and mass consumption. The concept is named after Henry Ford. It is used in social, economic, and management theory about production, working conditions, consumption, and related phenomena, especially regarding the 20th century. [1] It describes an ideology of advanced capitalism centered around the American socioeconomic systems in place in the post-war economic boom.

Contents

Overview

Fordism is "the eponymous manufacturing system designed to produce standardized, low-cost goods and afford its workers decent enough wages to buy them." [2] It has also been described as "a model of economic expansion and technological progress based on mass production: the manufacture of standardized products in huge volumes using special purpose machinery and unskilled labor." [3] Although Fordism was a method used to improve productivity in the automotive industry, the principle could be applied to any kind of manufacturing process. Major success stemmed from three major principles:

  1. The standardization of the product (nothing is handmade, but everything is made through machines and molds by unskilled workers)
  2. The employment of assembly lines, which use special-purpose tools and/or equipment to allow common-skilled workers to contribute to the finished product
  3. Workers are paid higher "living" wages so that they can afford to purchase the products they make [3]

The principles, coupled with a technological revolution during Henry Ford's time, allowed for his revolutionary form of labor to flourish. His assembly line was revolutionary though not original as it had previously been used at slaughterhouses. His most original contribution to the modern world was breaking down complex tasks into simpler ones, with the help of specialised tools. [4] Simpler tasks created interchangeable parts that could be used the same way every time. [5] That allowed for a very adaptable flexibility, creating an assembly line that could change its constituent components to meet the needs of the product being assembled. [4] In reality, the assembly line had existed before Ford, although not in quite the same effectiveness as he would create. His real accomplishment was recognizing the potential by breaking it all down into its components, only to build it back up again in a more effective and productive combination, thereby producing an optimum method for the real world. [4]

The major advantages of such a change was that it cut down on the manpower necessary for the factory to operate, and it deskilled the labour itself, cutting down on costs of production. [4]

There are four levels of Fordism, as described by Bob Jessop. [6] [7]

  1. Capitalist labour process: Through implementing highly organized, Taylorist methods of production, designed to produce higher output, output can be increased and workers fully utilized.
  2. Accumulation regime: Under the adherence to a belief in a 'virtuous circle of growth,' by increasing productivity, wages rise resulting in higher productivity, demand, investment, and operational efficacy.
  3. Social mode of economic regulation: Clarity is gained by analyzing the in/outflow of capital, both in micro- [wages, internal movement] and macro- [monetary body, commerciality, external relations].
  4. Generic mode of 'societalization': Deciphering State's and company's roles in the day-to-day economic lifestyles and patterns of the workforce, their economic habits, and the regional impact.

Background

Ford cars (Model A shown) became a symbol of effective mass production. Efficiency both decreased the price of the cars and allowed Ford to increase his workers' wages. Hence, common workers could buy their own cars. Ford Motor Company assembly line.jpg
Ford cars (Model A shown) became a symbol of effective mass production. Efficiency both decreased the price of the cars and allowed Ford to increase his workers' wages. Hence, common workers could buy their own cars.

The Ford Motor Company was one of several hundred small automobile manufacturers that emerged between 1890 and 1910. After five years of producing automobiles, Ford introduced the Model T, which was simple and light but sturdy enough to drive on the country's primitive roads. [8] The mass production of this automobile lowered its unit price, making it affordable for the average consumer. Furthermore, Ford substantially increased his workers' wages [9] to combat rampant absenteeism and employee turnover, which approached 400% annually, which had the byproduct of giving them the means to become customers. That led to massive consumption. In fact, the Model T surpassed all expectations because it attained a peak of 60% of the automobile output within the United States. [10]

The production system that Ford exemplified involved synchronization, precision, and specialization within a company. [11]

Ford and his senior managers did not use the word "Fordism" themselves to describe their motivations or worldview, which they did not consider an "ism". However, many contemporaries framed their worldview as one and applied the name Fordism to it. [12]

History

The term gained prominence when it was used by Antonio Gramsci in 1934 in his essay "Americanism and Fordism" in his Prison Notebooks . [13] Since then, it has been used by a number of writers on economics and society, mainly but not exclusively in the Marxist tradition.

According to historian Charles S. Maier, Fordism proper was preceded in Europe by Taylorism, a technique of labor discipline and workplace organization, based upon supposedly scientific studies of human efficiency and incentive systems. It attracted European intellectuals, especially in Germany and Italy, from the fin de siècle to World War I. [14]

After 1918, however, the goal of Taylorist labor efficiency thought in Europe moved to "Fordism", the reorganization of the entire productive process by the moving assembly line, standardization, and the mass market. The grand appeal of Fordism in Europe was that it promised to sweep away all the archaic residues of precapitalist society, by subordinating the economy, society, and even the human personality to the strict criteria of technical rationality. [4] The Great Depression blurred the utopian vision of American technocracy, but World War II and its aftermath revived the ideal.

Later, under the inspiration of Gramsci, Marxists picked up the Fordism concept in the 1930s and developed Post-Fordism in the 1970s. Robert J. Antonio and Alessandro Bonanno (2000) trace the development of Fordism and subsequent economic stages, from globalization to neoliberal globalization, during the 20th century, and emphasized the United States role in globalization. "Fordism," for Gramsci, meant routine, intensified labor to promote production. Antonio and Bonanno argue that Fordism peaked in the post-World War II decades of American dominance and mass consumerism but collapsed from political and cultural attacks on the people in the 1970s.

Advances in technology and the end of the Cold War ushered in a new "neoliberal" phase of globalization in the 1990s. Antonio and Bonanno further suggest that negative elements of Fordism, such as economic inequality, remained, allowing related cultural and environmental troubles, which inhibited America's pursuit of democracy to surface. [15]

Historian Thomas Hughes has detailed how the Soviet Union, in the 1920s and the 1930s, enthusiastically embraced Fordism and Taylorism by importing American experts in both fields as well as American engineering firms to build parts of its new industrial infrastructure. The concepts of the Five-Year Plan and the centrally-planned economy can be traced directly to the influence of Taylorism on Soviet thinking. Hughes quotes Joseph Stalin: [16]

"American efficiency is that indomitable force which neither knows nor recognizes obstacles; which continues on a task once started until it is finished, even if it is a minor task; and without which serious constructive work is inconceivable...The combination of the Russian revolutionary sweep with American efficiency is the essence of Leninism." [16] :251

Hughes describes how, as the Soviet Union developed and grew in power, both the Soviets and the Americans chose to ignore or deny the contribution of American ideas and expertise. The Soviets did so because they wished to portray themselves as creators of their own destiny and not indebted to their rivals, while the Americans did so because they did not wish to acknowledge, during the Cold War, their part in creating a powerful rival. [16]

Post-Fordism

Information technology, white-collar work, and specialization are some of the attributes of post-Fordism. Office Worker with Two Monitors.JPG
Information technology, white-collar work, and specialization are some of the attributes of post-Fordism.

The period after Fordism has been termed Post-Fordist and Neo-Fordist. The former implies that global capitalism has made a clean break from Fordism, including overcoming its inconsistencies, but the latter implies that elements of the Fordist ROA continued to exist. The Regulation School preferred the term After-Fordism (or the French Après-Fordisme) to denote that what comes after Fordism was or is not clear. [17]

In Post-Fordist economies: [17]

Cultural references

The mass-produced robots in Karel Čapek's play R.U.R. have been described as representing "the traumatic transformation of modern society by the First World War and the Fordist assembly line." [19]

A religion based on the worship of Henry Ford is a central feature of the technocracy in Aldous Huxley's Brave New World , where the principles of mass production are applied to the generation of people as well as to industry. [20] [21]

See also

Related Research Articles

<span class="mw-page-title-main">Assembly line</span> Manufacturing process

An assembly line is a manufacturing process in which parts are added as the semi-finished assembly moves from workstation to workstation where the parts are added in sequence until the final assembly is produced. By mechanically moving the parts to the assembly work and moving the semi-finished assembly from work station to work station, a finished product can be assembled faster and with less labor than by having workers carry parts to a stationary piece for assembly.

<span class="mw-page-title-main">Henry Ford</span> American business magnate (1863–1947)

Henry Ford was an American industrialist and business magnate. As the founder of the Ford Motor Company he is credited as a pioneer in making automobiles affordable for middle-class Americans through the system that came to be known as Fordism. In 1911 he was awarded a patent for the transmission mechanism that would be used in the Model T and other automobiles.

<span class="mw-page-title-main">Mass production</span> High volume production of standardized products

Mass production, also known as flow production, series production or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. Together with job production and batch production, it is one of the three main production methods.

<span class="mw-page-title-main">Frederick Winslow Taylor</span> American mechanical engineer (1856–1915)

Frederick Winslow Taylor was an American mechanical engineer. He was widely known for his methods to improve industrial efficiency. He was one of the first management consultants. In 1909, Taylor summed up his efficiency techniques in his book The Principles of Scientific Management which, in 2001, Fellows of the Academy of Management voted the most influential management book of the twentieth century. His pioneering work in applying engineering principles to the work done on the factory floor was instrumental in the creation and development of the branch of engineering that is now known as industrial engineering. Taylor made his name, and was most proud of his work, in scientific management; however, he made his fortune patenting steel-process improvements. As a result, scientific management is sometimes referred to as Taylorism.

<span class="mw-page-title-main">Industrial society</span> Society driven by the use of technology to enable mass production

In sociology, an industrial society is a society driven by the use of technology and machinery to enable mass production, supporting a large population with a high capacity for division of labour. Such a structure developed in the Western world in the period of time following the Industrial Revolution, and replaced the agrarian societies of the pre-modern, pre-industrial age. Industrial societies are generally mass societies, and may be succeeded by an information society. They are often contrasted with traditional societies.

<span class="mw-page-title-main">United Auto Workers</span> American labor union

The United Auto Workers (UAW), fully named International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, is an American labor union that represents workers in the United States and southern Ontario, Canada. It was founded as part of the Congress of Industrial Organizations (CIO) in the 1930s and grew rapidly from 1936 to the 1950s. The union played a major role in the liberal wing of the Democratic Party under the leadership of Walter Reuther. It was known for gaining high wages and pensions for automotive manufacturing workers, but it was unable to unionize auto plants built by foreign-based car makers in the South after the 1970s, and it went into a steady decline in membership; reasons for this included increased automation, decreased use of labor, mismanagement, movements of manufacturing, and increased globalization. After a successful strike at the Big Three in 2023, the union organized its first foreign plant (VW) in 2024.

<span class="mw-page-title-main">Scientific management</span> Theory of management

Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes to management. Scientific management is sometimes known as Taylorism after its pioneer, Frederick Winslow Taylor.

Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time. The most common example is the (aggregate) labour productivity measure, one example of which is GDP per worker. There are many different definitions of productivity and the choice among them depends on the purpose of the productivity measurement and data availability. The key source of difference between various productivity measures is also usually related to how the outputs and the inputs are aggregated to obtain such a ratio-type measure of productivity.

Post Fordism is a term used to describe the growth of new production methods defined by flexible production, the individualization of labor relations and fragmentation of markets into distinct segments, after the demise of Fordist production. It was widely advocated by French Marxist economists and American labor economists in the 1970s and 1980s. Definitions of the nature and scope of post-Fordism vary considerably and are a matter of debate among scholars.

<span class="mw-page-title-main">Post-industrial society</span> Society whose service sector provides more economic value than manufacturing

In sociology, the post-industrial society is the stage of society's development when the service sector generates more wealth than the manufacturing sector of the economy.

<span class="mw-page-title-main">Technological and industrial history of the United States</span>

The technological and industrial history of the United States describes the emergence of the United States as one of the most technologically advanced nations in the world in the 19th and 20th centuries. The availability of land and literate labor, the absence of a landed aristocracy, the prestige of entrepreneurship, the diversity of climate and large easily accessed upscale and literate markets all contributed to America's rapid industrialization.


The term efficiency wages was introduced by Alfred Marshall to denote the wage per efficiency unit of labor. Marshallian efficiency wages are those calculated with efficiency or ability exerted being the unit of measure rather than time. That is, the more efficient worker will be paid more than a less efficient worker for the same amount of hours worked.

<span class="mw-page-title-main">Operations management</span> In business operations, controlling the process of production of goods

Operations management is concerned with designing and controlling the production of goods and services, ensuring that businesses are efficient in using resources to meet customer requirements.

<span class="mw-page-title-main">Mechanised agriculture</span> Agriculture using powered machinery

Mechanised agriculture or agricultural mechanization is the use of machinery and equipment, ranging from simple and basic hand tools to more sophisticated, motorized equipment and machinery, to perform agricultural operations. In modern times, powered machinery has replaced many farm task formerly carried out by manual labour or by working animals such as oxen, horses and mules.

<span class="mw-page-title-main">Baumol effect</span> Rise of salaries in jobs that have seen little rise of productivity

In economics, the Baumol effect, also known as Baumol's cost disease, first described by William J. Baumol and William G. Bowen in the 1960s, is the tendency for wages in jobs that have experienced little or no increase in labor productivity to rise in response to rising wages in other jobs that did experience high productivity growth. In turn, these sectors of the economy become more expensive over time, because their input costs have increased while productivity has not. Typically, this affects services more than manufactured goods, and in particular health, education, arts and culture.

Low-cost country sourcing (LCCS) is procurement strategy in which a company sources materials from countries with lower labour and production costs in order to cut operating expenses. LCCS falls under a broad category of procurement efforts called global sourcing.

<span class="mw-page-title-main">History of Ford Motor Company</span>

The Ford Motor Company is an American automaker, the world's fifth largest based on worldwide vehicle sales. Based in Dearborn, Michigan, a suburb of Detroit, it was founded by Henry Ford on June 16, 1903. Ford Motor Company would go on to become one of the largest and most profitable companies in the world. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 110 years. Ford now encompasses two brands: Ford and Lincoln. Ford once owned 5 other luxury brands: Volvo, Land Rover, Jaguar, Aston Martin, and Mercury. Over time, those brands were sold to other companies and Mercury was discontinued.

<span class="mw-page-title-main">Productivity-improving technologies</span> Technological innovations that have historically increased productivity

The productivity-improving technologies are the technological innovations that have historically increased productivity.

Cognitive-cultural economy or cognitive-cultural capitalism is represented by sectors such as high-technology industry, business and financial services, personal services, the media, the cultural industries. It is characterized by digital technologies combined with high levels of cognitive and cultural labor.

The history of organizations describes the general history of the rise of the organization.

References

  1. Fordism & Postfordism, willamette.edu, retrieved 26 December 2008
  2. De Grazia 2005. p. 4.
  3. 1 2 Tolliday, Steven; Zeitlin, Jonathan. (1987). The Automobile industry and its workers: between Fordism and flexibility. New York: St. Martin's Press. pp. 1–2. ISBN   0-312-00553-9. OCLC   14905148.
  4. 1 2 3 4 5 Edited by; Burrows, Rober; Gilbert, Nigel; Pollert, Anna. Fordism and Flexibility: Divisions and Change St. Martin's Press (New York: 1992) pp. 13–17.
  5. "A Science Odyssey: People and Discoveries: Ford installs first moving assembly line". www.pbs.org.
  6. Jessop, Bob (1992), "Fordism and post-Fordism: A critical reformulation", in Storper, M.; Scott, A. J. (eds.), Pathways to industrialization and regional development, London: Routledge, pp. 42–62
  7. Jessop, Bob. (1992). Fordism and post- Fordism: A critical reformulation. Fordism and Post Fordism: A Critical Reformation. 46-69.
  8. Foner, Eric (2006). Give Me Liberty!: An American History. New York: W.W. Norton & Company, pp. 591–592.
  9. Sward, Keith (1948). The Legend of Henry Ford. New York: Rinehart & Company, p. 53.
  10. Rae, John B. (1969). Henry Ford. Englewood Cliffs, New Jersey: Prentice-Hall, p. 45.
  11. Rae, John B. (1969). Henry Ford. Englewood Cliffs, New Jersey: Prentice-Hall, p. 36.
  12. Hounshell 1984 , pp. 263, 376
  13. Gramsci, Antonio (1999). "Americanism and Fordism". In Hoare, Quentin; Smith, Geoffrey Nowell (eds.). SELECTIONS FROM THE PRISON NOTEBOOKS OF ANTONIO GRAMSCI (PDF) (Electronic ed.). ElecBook. pp. 561–563. ISBN   1-901843-05-X . Retrieved 7 August 2019.
  14. Maier, Charles S. (1970), "Between Taylorism and Technocracy: European Ideologies and the Vision of Industrial Productivity in the 1920s", Journal of Contemporary History, 5 (2), Sage Publications: 27–61, doi:10.1177/002200947000500202, JSTOR   259743, S2CID   162139561
  15. Antonio and Bonanno, 2000.
  16. 1 2 3 Hughes, 2004.
  17. 1 2 Hall, S. Brave new world. Marxism Today, October 1988, p. 24.
  18. 1 2 Webster, Frank (2006). Theories of the Information Society . New York: Routledge. pp.  80.
  19. John Rieder, "Karl Čapek", in Mark Bould, ed. Fifty Key Figures in Science Fiction. London, Routledge, 2010. ISBN   9780415439503 (pp. 47–51)
  20. "Brave New World is a critique of this streamlining process, of its all-too-pragmatic father Henry Ford, and finally of the Fordist workers whose lives of repetitive labor and goals of material comfort appeared to have triumphed over notions of intellectual inquiry and self-reflection". David Garrett Izzo, Kim Kirkpatrick (eds.) Huxley's Brave New World: Essays McFarland, 2008 ISBN   0786480033, (p. 63).
  21. Elon Musk's Brave New World: it worked for Henry Ford; why not Tesla? : The Conversation

Bibliography