Question

In: Operations Management

Henry Ford paid the workers in his automobile assembly plant more than most employers at the...

Henry Ford paid the workers in his automobile assembly plant more than most employers at the time. He also took an interest in their well-being outside of work. Agents helped workers organize their homes, manage their debt, and buy homes.

How did Ford’s approach to employee relations impact employees? Do you think it was to their advantage or disadvantage for the company to take such an active interest in their lives? If you were running a company, what practices of his might you adopt?

Solutions

Expert Solution

Ford's approach of taking care of employees by paying them more salaries and looking after them even outside of work creates a interest in the employees to work efficiently. They perform well and this results in the development of the company . Hence this approach will have a good impact on the employees. However if the involvement gets over and the employees feel that their personal lives are being interfered, it might turn as a disadvantage for them.But the way Ford is looking after them is an advantage until it gets too personal . We can adopt the practice of paying decent salaries and providing them homes . But we cannot decide their lives and we need to stay away from their decisions so that they will feel secure and comfortable.


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