Fordism to Post-Fordism: Evolution of Production Models

Posted on Nov 17, 2024 in Economy

Fordism: Origins and Development

Since 1804, England utilized a human chain, later mechanized (1883), for biscuit production for ships. The production demands of the World Wars led to Fordism’s widespread adoption. Fordism, a concept by Henry Ford (1863-1947), is a set of technological, economic, and sociopolitical ideas.

Key Features of Fordism

  • Standardized parts and products to reduce costs and boost sales.
  • Deskilling, worker concentration, and uniform working conditions.
  • Mass production, homogeneous products, and vertical structure.
  • Simple, repetitive jobs with quality control through inspection.

The Crisis of Fordism (Late 1970s)

Contributing Factors

  • Technical and Organizational Rigidity: Inability to adapt to fragmented and volatile markets.
  • Socio-Institutional Rigidity: Worker dissatisfaction and lack of integration.
  • Wasted Effort: Monitoring and defect correction.
  • Shift from Quantity to Quality: Emphasis on quality search.
  • New Technologies: Computerization, microelectronics, telecommunications, robotics.
  • Globalization: Increased competition due to market opening and investment attraction.

The Japanese Model (Toyota)

  1. Bottom-up decision making.
  2. Reduced specialization (contrary to Fordism).
  3. Enhanced workplace safety.
  4. Integration of work and private life.
  5. Income redistribution policies in specific sectors.

Post-Fordist Company

Characteristics

  • Decentralization and Functional Reorganization: Decentralization of large companies, mergers, and diversified investments.
  • Outsourcing: Reducing fixed investments and costs through subcontracting.
  • Internationalization: Expansion enabled by new technologies.
  • Deregulation and Labor Flexibility: Use of “client” concepts internally and focus on total quality.

The Flexible Firm (Toyota)

  • New Product Design: Innovation, variety, and diversification.
  • Just-in-Time Production: Minimizing inventory costs.
  • Increased Social Costs: Transportation and pollution issues.

Human Factor in Post-Fordism

  • Simplified organizational charts and innovation management.
  • Focus on quality optimization and continuous improvement (Kaizen).
  • Shift from “task” to “competition” involving employees in decisions.
  • Emphasis on teamwork and employee commitment.
  • Transition from stability to instability and flexible working hours.