...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 .........
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...Ford Motor Company Analysis Introduction Ford Motor Company was originally founded by Henry Ford in Dearborn, Michigan on June 16, 1903. Ford Motor Company has a very glamorous history. Since it was found in the early 1900’s, Ford positioned them as the reformer of the car manufacturing industry. Their mission was clearly stated in words, “began a manufacturing revolution with its mass production assembly lines”. And they rendered the corporate strategies matching with their goal in later years. “They introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914”. (“The Ford Story”) http://www.thefordstory.com/ the combination of attractive product design with the efficiency in manufacturing brought them not just profits, but popularity and reputation. Some of their famous classic designs like Model T, 500hp GT, Mustangs, Sport Utility Vehicle (SUV), Taurus and the best-selling F-series truck are still sold well. But Ford has been on the downhill since the beginning of the 21st century. Because of the crush of the bad economy and flawed management strategies, Ford suffered a lot and the previous ranking is now after Toyota and General Motor. It’s quite a burden to the CEO, Alan Mulally, who was elected as the new CEO in 2006 after Bill Ford stepped down...
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...was needed, people could fashion accordingly”. Organizational structure was considered a matter of choice. When in the 1930s, the rebellion began that came to be known as human relations theory, there was still not a denial of the idea of structure as an artefact, but rather an advocacy of the creation of a different sort of structure, one in which the needs, knowledge, and opinions of employees might be given greater recognition." However, a different view arose in the 1960s, suggesting that the organizational structure is "an externally caused phenomenon, an outcome rather than an artefact." In the 21st century, organizational theorists such as Lim, Griffiths, and Sambrook (2010) are once again proposing that organizational structure development is very much dependent on the expression of the strategies and behaviour of the management and the workers as constrained by the power distribution between them, and influenced by their environment and the outcome. Sources: http://en.wikipedia.org/wiki/Organizational_structure The set organizational structure may not coincide with facts,...
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...credited with using scientific management principles, it is widely believed that the father of scientific management is the management theorist, Frederick Taylor. Scientific Management and Taylorism are near synonymous due to the fact that the field of Scientific Management was pioneered by Frederick Taylor in the late 19th century. With the adoption of scientific management in virtually every aspect of management practice, the field of scientific management took off in a big way in the 20th century. This resulted in greater efficiencies and more productivity of the workforce as the application of scientific management theories meant that production processes were standardized and the principle of division of labour was applied leading to mass production of goods (Taylor, 2011, 80). An interesting aspect of the scientific management approach pioneered by Taylor is his emphasis on increasing efficiency from the “bottom up” where he concentrated on the shop floor to maximize productivity. When contrasted with the theories by Henri Fayol and Max Weber who favoured a top down approach, we find that Taylor’s approach is better suited to the rigours of modern day manufacturing and even service sector companies (Davis, 1975, 38). Taylor’s Influence: Fordism, Neo-Fordism Fordism developed as an offshoot of scientific management and was pioneered by the legendary founder of Ford Motors, Henry Ford. In this approach, standardization and mass production of automobiles was pioneered...
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...is money transfers at banks. True (What is operations management? moderate) 6. One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) 7. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) 8. "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) 9. In order to have a career in operations management, one must have a degree in statistics or quantitative methods. False (What operations managers do, easy) 10. Henry Ford is known as the Father of Scientific Management. False (The heritage of operations management, easy) 11. Shewhart’s contributions to operations management came during the Scientific Management Era. False (The heritage of operations management, easy) 12. Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial. True...
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...E-mail: rjdegen@gmail.com Phone: +55 21 8068 9000 Av. Pasteur 333 Botafogo/Urca Lancha Ovelha Negra Iate Clube do Rio de Janeiro 22290-240 Rio de Janeiro, RJ Brazil 3 Fordism and Taylorism are responsible for the early success and recent decline of the U.S. motor vehicle industry Abstract This paper identifies the ways in which the ideas of Fordism and Taylorism have been responsible for the success of the U.S. motor vehicle companies until 1955, and for their subsequent decline. On three occasions, the motor vehicle industry has changed the fundamental ideas on the process of manufacturing, and, perhaps more significantly, on how humans work together to create value. Under Fordism and Taylorism, the conditions of employment at the assembly lines became less and less bearable for the workers, and this resulted in an ongoing confrontation between management and the workforce, led by United Auto Workers (UAW). This confrontation resulted in escalating labor costs for the U.S. motor vehicle companies, and undermined their capacity to compete with the Japanese motor...
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...companies. However, there has been a number of different views as to how technology will impact the organizations, the management and the employees. Modern and critical perspectives will be taken to provide different insights on how technology is been viewed and understand. Since critical theory perspective is focused on challenging the modern theory perspective, we will be able to have a greater depth of understanding on technology environmental relationships. The modernist theory emphasize on the need for power and control for profit maximization. The critical theory on the other hand, provide a social perspective on how technology has an impact to the workers and the working environment. In this essay, we will take a look at how the development of technology is perceived differently by different factors namely the modernist and critical perspectives. Modernist Theory Modern theory perspective believes in objectivism and that objective truths are vital in the management of an organization (Green & Crother, 2004). Modernist seeks truths that are objective and honest. First and foremost, employing the use of electronic technologies such as surveillance can enlarge the...
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...EXECUTIVE SUMMARY: From the very beginning of automobile industry, product and branding strategies are considered as one of the major functions performed by the manufacturers. What is interesting that, with the passage of time, its importance is increasing significantly. Even though the voyage of automobile commenced in 1335 by Guido da Vigevano, in true sense there was not any considerable development until 1885, when Karl Benz invented the first practical automobile. Since then the automobile industry has gone a long way consisting of a number of renowned companies. In this industry, the core product is transportation and communication facility backed by actual and augmented product. Product line decision involves Line stretching and Line filling. In this industry, Mercedes-Benz lengthens its product line by using both line stretching and line filling. Since the early branding era, the branding strategies have changed throughout the time. Branding is, now-a-days, influencing the consumer buying behavior to a greater extent. As such manufacturers are now concentrating more on brand placement rather than product placement. They are developing brand loyalty in the minds of their customers in order to achieve high retention rate. Automobile companies can build up both product and corporate brand, but the recent trend is towards emphasizing on corporate branding. Previously it was thought that Branding is necessary from the sellers point of view to differentiate own products,...
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...A Vision to 21st century leadership The ultimate measure of man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy. --Martin Luther King Jr. Abstract: Great quotes, great literature, great historical leaders, but still world is exploring the real essence of leadership. When we talk about leadership skills what exactly do we mean? Leadership skills are tools, behaviors and capabilities that a person need in order to be successful at motivating and directing others. Yet true leadership skills involve something more; the ability to help people grow in their own abilities. It can be said that the most successful leaders are those that drive others to achieve their own success. There are many leadership styles and has lot many leadership qualities attributed to the styles. Which one is perfect and what qualities make a good leader is slowly becoming the context and situation oriented. The dynamics and characteristics of this 21st century world are greatly varied than previous centuries. As the society becomes faster paced and dynamic the problems and challenges are also evolving in rapid fashion, making them even more difficult to resolve. People perception and demands on their leadership is also changing fast. They demand new styles of leadership which provide solutions, not necessary an autocratic way but a blend of different styles and qualities to suite these dynamic, challenging, complex 21st and future...
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...levels of management; Priest, Bishop, Arch-Bishop, Cardinal and Pope (Tiernan, Morley, Foley 2006,p12). Many other organisations have adopted this form including the Dublin Fire Brigade and from this we have fire-fighters, sub-officers, station officers, district officers, third officers, assistant chief fire officers and chief fire officer. Historically management was operated on a trial and error basis, prior to the industrial revolution the lack of efficient transport and communications restricted the expansion of most businesses and stifled the development of management within industry. “Management is tasks. Management is a discipline. But management is also people. Every achievement of management is the achievement of a manager. Every failure is a failure of a manager.” ( Drucker 1997, p.14) The Industrial Revolution In the middle of the 1700’s, a new revolution gripped the world, the Industrial Revolution, as it now called by historians, changed the ways by how the world produced its goods. It also changed society from being mainly...
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...Porter’s Five Forces Bargaining Power of Supplier (Moderate) Toyota has different supplier for different parts of the automobile. Some of the suppliers are: - KEIPER: a supplier of rear seat assembly locks - TAC Manufacturing: a supplier for shift lever knobs - Tenneco: a supplier of exhaust components - Bridgestone: a supplier of tires - Samsung Electronics: creating a car mode App The suppliers for Toyota play a vital role in production. But, there are moderate population of suppliers and high overall supply. The limited population of suppliers can affect the production of Toyota. Because of the limited population, the bargaining power of supplier is high, but the high availability of supply used for manufacturing toyota’s products weakens the suppliers’ power. Thus, the bargaining power of supplier is moderate. Bargaining Power of Buyer (High) Toyota’s aim is to serve the middle income customer because the cars that they produce are affordable. The buyer purchase small volume of the products because cars are expensive. Because its aim is to serve middle income customers, toyota’s have a lot of buyer because the population of middle income customers is more than high income customers. The product is worthy because the quality is good, the price is affordable, toyota has its own mantainance service and the secondhand’s price is good. The switching costs is low because customers can easily change from toyota to competing firms at no extra cost. The customers have...
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...in Contrast Changing Ways of Making Cars Car production has changed dramatically over the years as managers have applied different views or philosophies of management to organize and control work activities. Prior to 1900, workers worked in small groups, cooperating to hand-build cars with parts that often had to be altered and modified to fit together. This system, a type of small-batch production, was very expensive; assembling just one car took considerable time and effort; and workers could produce only a few cars in a day. To reduce costs and sell more cars, managers of early car companies needed better techniques to increase efficiency. Henry Ford revolutionized the car industry. In 1913, Ford opened the Highland Park car plant in Detroit to produce the Model T. Ford and his team of manufacturing managers pioneered the development of mass-production manufacturing, a system that made the small-batch system almost obsolete overnight. In mass production, moving conveyor belts bring the car to the workers. Each individual worker...
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...point of clarification before you start your journey with the gurus and masters: a Guru is a person who is very knowledgeable and teaches a particular strategy. A Master is a practitioner of the art of strategy in life and in business. Management & Strategy Gurus Main Guru's Index ABCDEFGHIJKLMNOPQRSTUVWXYZ 1 of 41 9/21/2014 3:38 PM http://www.easy-strategy.com/strategy-gurus.html Military Gurus Blog Ask me! Newsletter Clients Privacy Policy Motivational [?]Subscribe To This Site A Igor Ansoff Igor Ansoff The father of Strategic management Igor Ansoff (1918-July 14, 2002) was an applied mathematician and business manager. He is known as the father of Strategic management. He was a distinguished professor at United States International University (now Alliant International University) for 17 years, where several institutes continue his work in strategic management research. Igor was recognized worldwide as the Pioneer and Father of Strategic Management. He was the first management strategy guru to recognize the need for strategic planning for firms operating in the increasingly complex and turbulent environment. Chris Argyris Chris Argyris (born July 16, 1923) in Newark, New Jersey, USA, a Professor Emeritus at Harvard Business School, is more commonly known for seminal work in the area of Learning Organizations which was later developed in the best selling The Fifth Discipline by Peter M. Senge. The work of Chris Argyris has influenced our thinking about...
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...UNIVERSITY OF NAIROBI DEPARTMENT OF MECHANICAL AND MANUFACTURING ENGINEERING FME 543 INDUSTRIAL MANAGEMENT TERM PAPER CONTRIBUTIONS OF TAYLOR’S PRINCIPLES OF INDUSTRIAL MANAGEMENT OF TODAYS PRODUCTION MANAGEMENT(TAYLORISM) Name: David Mathaga Reg: F18/23827/2008 CONTENT: 1. Introduction Taylorism: - Definition 2. Overview -General approach -Contributions -Elements 3. Applications -McDonalds -Toyota 4. Conclusion 5. Reference INTRODUCTION: TAYLORISM: Definition: Production efficiency and methodology that breaks every action job or task into small and simple segments which can be easily analyzed and taught. Taylorism, * Aims to achieve maximum job fragmentation to minimize skill requirements and job learning time, * separates execution of work from work-planning, * separates direct labor from indirect labor * replaces rule of thumb productivity estimates with precise measurements, * introduces time and motion study for optimum job performance, cost accounting, tool and work station design, and * makes possible payment-by-result method of wage determination Named after the US industrial engineer Frederick Winslow Taylor (1856-1915), Taylor believed that the industrial management of his day was amateurish, that management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified...
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...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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