PowerPoint Presentation

Henry Ford- The generous yet smart decision maker

Akshay Anand15B102The Company: FORDFounded on June 16,1903

American Multinational Automaker

Headquartered in Dearborn, Michigan

PROBLEM

Year 1913, an unlikely event

His products grew more famous than expected

Employee turnover increased

Decided to follow the advice of his partner, Lieutenant James CouzensJanuary 1914 - Henry Ford announces decisions after calling newspaper reporters to notify changes in employee policy

Announcements :-

Company reducing its work hours to eight hours from nine hours

Shifts of three instead of shifts of two

(One More)

What was the last announcement?

Problems subsided DOUBLE THE WAGES!!

Improve productivity and better employee satisfaction

Problems Resolved!! A magnificent act of generosity declared the New York post

Within a year annual labour turnover fell from 370% to 16%

Productivity was up from 40% to 70%

THINGS GET EVEN BETTER!! Wage increase helped employees

Afford cars

More sales

Just by raising wages, Ford was able to expand the overall market forthe model T that Ford manufactured

On the day of the announcement, January 5th 1914, Ford had said We believe in making 20,000 men prosperous and contented rather than follow the plan of making few slave drivers in our establishmentMillionaires. And to this day, hes known as a man of his word