Question:
“The Fordist system is incompatible with long-term innovation.” Discuss this assertion.
Answer:
Fordism is a part of the American System of Manufactures, its general concept and fundamental paradigm is pretty much similar with Taylorism, which is grouped together in the world of functionalist paradigm. Regarding their ability to innovate is not fully relevant in nature since their rigid hierarchical structures are not designed to do such a quick change in the first place.
The general concept of Fordism is based on the assumption idea of the “mass market” where large factories with high fixed costs achieve returns only by developing economies of scale that enable them to produce a large number of a limited range of standardized products. Ford and Taylor assumed that the market is homogeneous, doesn’t require much change, and they assessed their point of view mainly from the efficiency and profitability of production, without bearing the market demand.
However, many years later, people getting sick and bored with the Model T that Ford Motor offered. The colour was paint all black, with standardization of its model, spare parts, tires, and even the perks. It was a huge success in the early years of launch though, however, some people expect a customization and trying to be different from other people, which is something that Ford Motor doesn’t come up with. This was result in a short term benefits, however, on the subsequent year its market share dropped significantly due to lack of innovation.
For innovation to occur, something more than the generation of a creative idea or insight is required: the insight must be put into action to make a genuine difference, resulting for example in new or altered business processes within the organisation, or changes in the products and services provided.
Fordism’s assembly line work is unpleasant in a mass production environment. It is physically demanding, requires high levels of concentration, and can be excruciatingly boring. As a consequence. according to the somewhat stylized facts, Ford, believing “men work for only two reasons: one is for wages, and one is for fear of losing their jobs,” dealt with labor turnover by doubling pay to $5 a day; that other manufacturer’s emulated Ford’s wage policies along with his production methods; and that eventually all employers were forced to bring wages into line with those offered unskilled labor in manufacturing. In other words: premium pay for putting up with what Gramsci described as mass production’s “monotonous, degrading, and life draining work process.”
Another assumption on worker’s perspective; that workers’ own tacit knowledge (the knowledge which retrieved from working on the shop floor) is also ignored due to management’s perspective of worker having insufficient knowledge to understand the whole work process. It is true that the level of knowledge of production factory worker was pretty much low, but as workers gain their knowledge throughout time from various customer’s feedbacks and how they think they can help to improve the systems, it becomes very important input for innovation and enhancement of the product and the management itself.
Fordism was very much based on his assumption belief of “rabble hypothesis”; that every individual acts in a manner calculated to secure his self-interest; and only respond in terms of financial rewards. The system can be seen as a two way process. The workers saw that there is no driving force for them to tell their manager about an improvement in the workplace, a.k.a innovation; how to make things better since their management doesn’t reward them anything. Ford also banned workers from taking and whispering, as Ford believed that this distracted them from the job in hand and would result in a decrease in production speed. Its manager and worker relation was generally conflictual rather than co-operative.
In Fordism, Innovation is a very hard word to come out with. It involves huge investment and complete redesign of its entire workflow and existing technology since the degree of specialization, standardization and integration of production steps is enormously high and changes or modifications in certain parts requires an approval from top management, which of course will cost more time to process. Top down research and development took years to plan new products. Where markers were stable and all other participants acted in a similar way, this was unproblematic.
After the failure of the Fordism system, many believed that it reached its social, organizational and technological limits. There are three main driving forces behind the emergence of Post-Fordism are the rising of new technologies, internationalization and the paradigm shift from Fordism to post-Fordism. Believed that a new post-fordist form of society would emerge from the growing computer, media and communications technologies; In fact that recent day, changes and innovations are everywhere, our global economic world playing field, according to economist Thomas L Friedman, is being leveled, means that several technological and political forces have converged, and that has produced a global, Web-enabled playing field that allows for multiple forms of collaboration without regard to geography or distance – or soon, even language.
Post-Fordism is based on the dominance of a flexible and permanently innovative pattern of accumulation. It is based on flexible production, rising incomes for polyvalent skilled workers and the service class and increased profits based on technological and other innovations. Post-Fordism is more demand than supply-driven. Competition will turn on non-price factors such as improved quality and performance for individual products and responsiveness to customers.
In the conclusion, the post-fordist system acknowledges consumer tastes by increasing its differentiation in the market, therefore initiates and addresses the very important issues of long term innovation. Post-fordism rests on the presumption that a competitive edge cannot be gained by treating workers like machines and that nobody in the manufacturing process, but the assembly worker, adds value, that the assembly worker can perform most functions better than specialists (lean manufacturing), and that every step of the fabrication process should be done perfectly (TQM), thus reducing the need for buffer stocks (JIT) and producing a higher quality end-product.