Evolution of Work Regimes and Modern Business
Work Regimes
The source of work, in family or domestic industry, was developed in early cities. There, people produced according to the amount of their needs. For example, in Rome, slaves worked for feudal lords.
The number of workers was divided, and they became artisans, street vendors, etc. Then, all workers and traveling craftsmen became businesses.
With industrialization, the preindustrial working conditions and rates changed.
Taylorism and Fordism
During the Second Industrial Revolution, the U.S. and Germany fought for England’s industrial leadership. This era is characterized by standardized, large-scale production of mass consumption items.
In the United States, two movements deepened the Industrial Revolution: Taylorism and Fordism.
Taylorism
Frederick Taylor promoted the specialization of labor. He divided multiple complex tasks into simple, repetitive tasks. He measured the times and movements that corresponded to each task and established the most convenient ones. Thus, the operator has established all times and must meet a certain minimum amount during their working hours.
Fordism
Developing the assembly line, by 1912, Henry Ford introduced the conveyor belt, and each operator was assigned a single task. For this type of work, many workers are needed.
Toyota represents a whole new way of organizing work. Automated production originates, enabling products to change rapidly. It is called “real-time programming.”
Main Innovations of Toyotism:
- Demand for multi-skilled workers: Able to perform various tasks according to business needs and production.
- Quality Circles: A group of workers gathers, inside or outside working hours.
- Working Groups: Some get the job or task and then agree on the division of tasks and production control.
- Just in Time: Production at the right time, producing what is necessary at this time, taking into account what is for sale.
Changes in Consumption
- Consumers learn to buy and select those that suit them most.
- Requires high quality and affordable prices.
- Looking to preserve their health with products.
- Looking for products that preserve the environment and are recyclable.
- Tendency to self-service, fast food, and home delivery.
Why do Business Alliances Exist?
To satisfy increasingly large markets, companies are required to make large investments. These require a large amount of capital, which is not always easy to achieve.
Types of Partnerships
- Partnership with suppliers: Ensures a steady supply of materials needed for production.
- Partnership with customers: Customer knowledge can ensure product placement.
- Partnership with companies that produce substitute goods: Helps eliminate market competition and offer a greater variety of products.
- Partnership with competitors: Allowed to operate in the market price.
Acquiring a Company: Considerations
The Company’s Past
- Its presence in the market trajectory.
- Experience in the distribution of products.
- The evolution of its estate, tax, and professional replacement.
The Present Company
- Status of business.
- Market position in relation to competition.
- Channels of distribution and sales force.
- Technology achieved.
The Future of the Company
- Favorable market outlook.
- Forecast of the future development of the company.
- Time and method of recovery of investment.
Globalization
Globalization is a process of integration of the economy worldwide. Everyone is a large market in which multinational companies develop, who seek the highest return possible.
Total Quality
Total quality means not only high-quality products, tending to zero defects, but also greater quality in the processes that lead to obtaining such a product.
Kaizen Method
It is the Japanese method of continuous improvement. Its philosophical rationale is not limited to continuous improvement in production but also in personal life, family, and society.
Continuous Improvement
- Watch the competition, because it is always possible to overcome some other improvements.
- Utilization of media is making the best possible way.
- Customer satisfaction is essential and is the current orientation of business.
- Continuous improvement in society, sponsoring cultural events, creating foundations, etc.