Many years later he devised what he called “The 14 principles of management” They are as follows: 1. Division of work – opportunities for increased efficiency through specialisation. At the Ford Bridgend plant, they use Computer Aided Manufacture (CAM) machines to lower job time dramatically. By using CAM they are generating more productivity whilst not compromising on accuracy or quality. This is great for Ford as they are able to ship out more engines on demand, though it can make jobs a little boring for employees.
2. Authority and responsibility – to be related, for management to be effective Ford Bridgend implements the use of a ‘lean management team’ this structure consists of a Plant manager, Area manager and a Foreman. Managers are responsible for keeping certain areas running; this means that they have the power to discipline employees that are not producing to a certain level. 3. Discipline – effective discipline requires good managers at all levels Unit of Command – employers should receive orders from only one superior.
The quality of output is a key element at Ford and they try to keep it at a high standard. To accomplish this they regularly attended Quality assurance meetings, where they discuss any recent faults in quality. When an engine is produced at Ford they embed a certain engine number on it, this number can be retraced back to the exact date, time and who built that engine. If there are any constant faults then an investigation is conducted into how they can stop the fault. 4. Unit of Direction – each organisational unit should have a single objective.
At Ford team leaders are elected by the teams that they are in. This elected leader may not be the most qualified or even the most experienced member of that team. As they have authority of team members they must try to encourage them to carry out a good job 5. Unity of direction – each organisational unit should have a single objective. Ford, everyday give out individual daily tasks to each team at the plant, they must complete their task or Ford will not accomplish their team objective which is to ‘produce as many engines as demanded’.
Subordination of individual to general interest – ‘goal congruence’ essential. Goal congruence exits where the goals of management and the goals of the investors in the firm are aligned. This is true at Ford as both goals are the aligned, ‘to produce as many ford engines as demanded’ 7. Fair remuneration – from both the employer’s and the employee’s points of view. All employees at Ford agree with their wage, this is an important subject for Ford because if they didn’t then it would be a huge de-motivator. The average wage in the plant is around 365 a week.
The average salary is i?? 400 – i?? 500 a week with three individual breaks a day. 8. Centralisation – depending on the particular organisation and circumstances. Ford do not agree with a centralised management style, this is shown because the implement the use of ‘suggestion boxes. These boxes encourage employees to think of ways to improve the plants production and quality levels. As an incentive to participate they can win a car or a cash lump sum between 20 – 2,500. 9. The scalar chain – the chain of command to be followed, with rare exception.
Ford do use the scalar chain but to a certain extent because employees ‘can’ change the decisions of their superiors through methods such as the ‘suggestion box’ 10. Order – every person and other resource too have an assigned place. Ford controls their workforce more effectively when they are in teams. They know that teamwork is vital to enhance productivity levels so they ensure that team members know where they are and their responsibilities. 11. Equity – all personnel within the company to be treated fairy.
Ford ensures that all employees are treated with respect and equality. As there are male and female, multi cultural, old and young people may work on the same team and if there are any outbursts Ford use extreme action. 12. Stability of tenure – job security to be provided wherever practicable. Ford emphasizes on job security and safety, as they say ‘a job at Ford is a job for life’. All work clothes and health and safety equipment are provided for by Ford. There is also a i?? 45,000 multi gym that employees can use if they wish.
There is also a 25% employees discount up to four Ford cars a year plus the chance of winning a car every month. Ford takes care of their employees and put no limits on them. They also pay and give them time off to enhance their qualifications and skills to become a better employee. 13. Initiative – to be encouraged from subordinates, by managers. Managers encourage the lower employees at Ford to use the ‘suggestion box’ as it shows the initiative of individual employees. 14. Esprit de corps – teamwork and sound communications vital, to maintain the motivation of the workforce and management.