Fordism - Henry Ford radically changed factory processes. Explain Ford's contribution, and describe (critique) both the positive and negative consequences for organisations and their employees.
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Fordism is defined as the production process that standardized the process of mass production which results in lower price of production and higher production capabilities. The term Fordism is basically the name given to the ideas of Henry Ford who thought of ways to increase the efficiency and effectiveness of the mass production processes in manufacturing firms. Fordism includes elements like the standardization where the same components, the processes and the other tools used for manufacturing processes which removes. Thus the same machines, moulds, raw materials and components were used to prepare a standardized product which reduces the variability in production for different batches and reduces the cost of production. It also involves the use of assembly line for production where the each step of production process is carried out by a particular person and the product moves from one person to another person for the subsequent steps before the final product is complete. The concept behind creating assembly lines was to break down complex steps completed by the workers into smaller and simpler steps and assigning selected workers and tools to complete those simpler tasks (Lipietz 1993, pp. 54-62). Another important feature of Fordism was the introduction of schemes which helped the workers to get higher wages like the Five Dollar Day where the workers who worked as per the standards defined by the management used to get higher wages.