The Legacy Of Ford Motor Company Essay

1026 Words Dec 11th, 2015 null Page
Another possibility that Ford had for introducing the Five-Dollar Day is known as “efficiency wages.” The term “efficiency wages” describes the “[claim] that workers paid more than the prevailing wage rate will be less likely to shirk for fear of being fired since alternative employment is less attractive” (Taylor 685). Essentially what this means is that Ford was willing to pay his employees more if it meant that they would be more productive, and the reason for their higher productivity being they could not find higher pay elsewhere. Although this plan also appears to be a very plausible reason for the Five-Dollar Day, it has its flaws too. The Ford Motor company started to install its first moving assembly line in April 1913, and after the final assembly in October 1913, the opportunity to shirk disappeared (Raff 181). The moving assembly line allowed the factory to run at a smooth and consistent pace. If an employee decided that he wanted to shirk, “the supervisor could look could look down the line and tell at a glance whether there was trouble and if so at what operation. Wherever the stock back up on a rollaway was a trouble spot. The solution to the problem was quite swift: Substitutes were kept constantly on hand, at the factory’s expense, to meet all emergencies” (Raff 394). As Raff explains, there really was no opportunity for employees to be careless.
So far, the motives explored for the Five-Dollar Day have fallen short, and consequently the motive not yet…

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