(k) The Ford System.
The Ford System is illustrated in the diagram on p. 108. The amount received by the worker is the same no matter what his efficiency may be, but wages are 50 per cent. higher than the standard day rate. For this reason the firm adopting this system has a far greater choice of workers than other firms, all the best labour gravitating to the firm. The worker is, of course, expected to submit to the conditions prevailing in the factory, and to do the work allotted to him in the stated time and with the degree of accuracy stipulated. Needless to say, the amount of work expected is far greater than under ordinary day work conditions.
This system has two serious disadvantages, the first being that it is of extremely limited application, and the second that it necessitates an exceptionally high degree of organisation if it is to be satisfactory.
With regard to the first point, the system depends entirely on paying wages considerably higher than the average of the district or country in which the factory is situated. This high wages inducement gives the firm the pick of the workers and holds the men to their positions. It is obvious that only one or two firms in each trade can do this. If the system became general, it would mean that wages would be increased all round and that men need no longer be afraid of being discharged. They could leave and get equally high wages elsewhere. Under such circumstances all the advantages of the system would disappear, and wages would be reduced all round until some firm began again.
Dealing with the second point, production will not be increased, or will be increased very little, if the men are left to themselves, and therefore a high degree of organisation is necessary. It means time study, planning, constant improvement in methods and machines, and all those incidentals described herein under Reward System, but with an overhanging threat of dismissal that is absent from the Reward System. The firm must have a standard product if the system is to be economically successful, and each man must do one job only and do it in the manner indicated. Team work is the essence of the system. It is quite impossible to obtain any beneficial result from the Ford System if applied to an average factory. Men cannot produce anything approaching their maximum capacity unless the work is thoroughly well organised, and waste of time, labour, and material, eliminated. And no matter how much the men desire to be worthy of the increased wages, they cannot be blamed if the organisation fails. The only incentive to high production is, of course, the threat of dismissal.
If the Ford System is to be successful, therefore—