Introduction
Henry ford was one of the most influential and important business men and investors in the history of America. Ford transformed the world of business and forever changed the efficiency of industries across the globe. The main reason as to why Ford is considered as an important man can be attributed to his concepts and ideas which are still applied even in today’s world. Ford is regarded as the father of modern assembly lines that are used in the mass production of automobiles. The Model T that was introduced by Ford revolutionized American industry and transport. Ford was a creative inventor and he managed to be awarded 161 patents by the United States government. At the Helm of the Ford Motor Company he became one of the best known and richest individuals’ worldwide. Ford is recognized as the founder of Fordism which refers to the mass production of cheap automobiles using with high worker wages.
The life of Henry Ford.
Henry Ford was born on July 30, 1863 to William and Mary Ford who were successful farmers in the town of Dearborn, Michigan. Ford was the eldest son in the family, and being the son of a wealthy farmer he was not fed from silver spoon or spoilt like the rest of the children born in rich families. Ford was similar to any other typical boys born in the 19th Century. As a young boy there were clear indicators that Ford was going to be more than just a simple farmer. He developed an interest on his father’s machinery which he was using for farming, and looked with contempt at the painstaking chores of a farmer. Ford spent most of his free time exploring and observing exactly how things work, this free time helped young Henry to develop logic and thinking abilities.
Nevertheless being a farmer’s son it meant that he had very little free time as there were always jobs to be done. By the time Henry was 12 years old, he was able to even do a man’s job on his father’s farm and had even started to repair machinery and equipment for the neighboring farmers. Henry’s father would be pleased when he reset a handle, make hinges or repaired a harness but was not happy when Henry repaired the machinery of neighbors; this is because he often repaired the machinery without charging the neighbors anything. One day Henry saw a farming machine that was powered by a steam engine and this led to his dream and desire of constructing a much smaller engine that would be used in powering a vehicle ad which could replace the work of a horse.
At the age of thirteen unfortunately the mother of Henry ford passed away and Henry due to his ambitions was not satisfied with living on the farm; however Ford decided to stay on for three more years. By the time Henry was 14 years old, he had developed a keen interest in mechanics and industry this had emerged from the steam engine that he had seen which gave him the enthusiasm to pursue his interests. Wasting no time Ford went out to explore the working word and set up his own first business in 1879 called James Flower and brother machine shop in partnership with James Flower. At the age of 16 years Henry moved to the city of Detroit and was employed as an apprentice machinist. He remained in Detroit where he learned and worked on almost all types of machines. Even though Henry occasionally visited home in Dearborn, he spent most of his time in Detroit where he gained more and more precious knowledge. The apprenticeship which he got in Detroit enabled him to work in a number of factories in Detroit and was able to learn how to work in a blue collar position. (Watts, 2005)
By 1891, ford was made an engineer at the Edison illuminating company, and thereafter in 1893 he was made a chief engineer. This gave him enough money and time to focus his attention in his experiments on gasoline engines. In 1896, his experiments bore fruits, he constructed the Ford Quadricycle that was self propelled and which he later improved. In 1896, he met Thomas Edison who approved his automobile experimentation, this encouraged ford to build a second vehicle.
In 1901 with the help of Harold Willis, Ford designed a 26 horsepower automobile that was very successful. Having succeeded, Ford together with other stake holders incorporated the Henry Ford Company with Ford as the chief engineer. However Murphy who was a stakeholder employed Henry Leland who was a consultant, this led to the exit of Ford and Murphy changed the name of the company to Cadillac Automobile Company.(Banham, 2002)
The Ford motor company
In 1903, Ford, Malcomson, the Dodge brothers and other investors reincorporated Ford Motor Company using a capital of $ 28,000. He designed a new car that had the fastest record on land, this attracted Barney Oldfield, a race car driver to take up the model across US and this greatly marketed the car. In 1913, Ford introduced the first automobile assembly line and this transformed product manufacturing. (Brinkley, 2003)
Model T
The hallmark of Ford’s achievement is attributed to the production of Model T which was inexpensive and attracted a new and broader range of prospective buyers. The unorthodox approach and controversial characteristics of Ford in managing the Ford Company led to the rise in the conglomeration as one of the best performing companies worldwide. By the end of the century every industry was booming. The stock market and economy grew and job opportunities increased.
In 1914, Ford perplexed the world by giving workers a wage of $ 5 per day which was twice the wage that workers in that era were receiving. This approach was extremely profitable as the best mechanics in Detroit migrated to the company and hence brought in expertise and human capital, consequently lowering costs of training and raising productivity. The company also used a vertical integration approach that was successful as ford constructed a very big company that brought in raw, materials and produced finished automobile.
Model A
In 1926, the high sales of Model T led to Henry’s desire to create a new model. He put in a lot of technical expertise in designing chassis, engine and other mechanical aspects and gave his son Edsel the task of designing the body. By 1927 the Ford model A was successfully produced and yielded an output of over $ 4 million. Thereafter, the company put in place a policy that required the annual change of models. In 1930 Ford incorporated the Universal credit corporation that was used for financing car operations. (Bak, 2003)
Welfare capitalism
This is the labor philosophy that was pioneered by Henry Ford; it was aimed at improving the welfare of his workers and specifically reduce the rates of turnover that was facing many departments at the time. Ford was of the view that a high level of efficiency could only be attained by keeping and hiring the best workers. Ford proved that by paying the workers more they were able to purchase the cars they produced and this improved the economy. He also introduced the profit sharing approach whereby workers who had worked for him for more than six months were offered with more wages if they proved to be disciplined in their lives, discipline meant no gambling and heavy drinking.
Ford also ventured briefly in the business of aviation during the period of the first world war by building liberty engines. He was able to successfully build the Ford 4AT Trimotor which flew for the first time in 1926. He was able to produce around 200 Trimotors but the production was stopped due to low sales in 1933.
Henry Ford was strongly opposed to the First World War because he viewed it as a waste of time; he critically opposed the financiers of the war and made a few attempts to stop them because he felt that making things was a better way to spend time. Adolph Hitler admired Ford’s achievement and in 1938, he awarded Ford with a medal that was the highest any foreigner could be given. (Wallace, 2004)
Conclusion
It is clear from this research paper that Henry Ford is not any ordinary many. Henry has greatly contributed in the automobile industry and other industries in existence today. The importance of the works of Henry cannot be simply summarized, Henry ford changed the whole era in which he lived in. the intense commitment by Henry Ford to reduce costs led to numerous business and technical innovations that are still applied to day. He pioneered Fordism which is the mass production of cheap automobile using an assembly line and at the same time paying high rates of wages to workers. He is also credited for welfare capitalism which was aimed at improving the welfare of his workers and specifically reduces the rates of turnover that was facing many departments at the time.
Reference:
Bak, R. (2003): Henry and Edsel; The creation of the Ford empire. Wiley
Banham, R. (2002):The Ford Century. Pg. 44. Tehabi Books.
Brinkley, D. G. (2003): Wheels for the World: Henry Ford, His Company, and a Century of Progress. Viking Adult.
Wallace M. (2004): The American Axis; Henry Ford, Charles Lindbergh, and the Rise of the Third Reich. Macmillan publishers
Watts, S. (2005): The People’s Tycoon: Henry Ford and the American Century. Knopf, New York
