Henry Ford was a brilliant entrepreneur who created the automobile assembly line. However, it was his controversial characteristics and unorthodox approach towards administrating the Ford Motor Company that led to the conglomeration of one of the most successful corporations in the world. At the turn of the century, with the booming economy and stock market, job opportunities and morals increased. In the midst of this industrial revolution emerged Henry Ford, a humble yet driven man. His five dollar/day plan, company administration policies, and customer relations often portrayed him as a suspicious character. Despite these controversies, they epitomized the company’s success rather than leading to his own downfall. While accusations of Anti-Semitism and allegations that Ford took advantage of his customers existed, they were overshadowed by his brilliance and strong leadership in running his company.
Henry Ford’s controversial actions were criticized for hindering the further growth of Fords. Despite being a highly successful automobile company in the mid-twenties, their reputation began to decline. Ford’s $5/day plan demonstrated the company’s immense success but was short-lived due to new policies. In the mid-30s, Ford reduced all workers’ wages by half in an effort to boost production and cut costs. Workers were expected to work faster and harder, with talking and whistling prohibited during work hours. Ford aimed to closely monitor his workers, displaying possessiveness. Additionally, he started firing older employees and replacing them with younger ones under the belief that they would be more productive and efficient, ultimately generating more profit for him. This resulted in comical scenarios where older workers resorted to dyeing their hair black as a disguise for their age. Overall, Ford’s treatment of his workers lacked industrial democracy and was deemed immoral and unjust since employees had no choice but to comply or risk losing their jobs.
The negative impact of Henry Ford’s controversial behavior extended to both himself and the reputation of the Ford Motor Company. It was widely known that Ford held Anti-Semitic views, which were evident in an article he wrote for the Dearborn Independent. In this article, he placed blame on Jews for various societal issues. During the early 1930s, Aaron Sapiro filed a lawsuit against Ford, presenting evidence of his expression of Anti-Semitic sentiments. Ford was overheard stating, “Sapiro is a shrewd little Jew. The Bible says Jews will return to Palestine, but they want to get all the money out of America first. Sapiro should be kicked out because he is trash.” This trial resulted in humiliation for both Ford and his company. While the initial trial ended with a hung jury, Ford eventually retracted his statements and issued a lengthy apology, which led to the dismissal of the case. Consequently, due to Henry Ford’s ego and declining profits and production levels by 1931, his market position dropped to second place with only 28% control behind GM with 31%.
Henry Ford, the pioneer of the automobile industry in the early 1900s, had a significant impact on both the local community and immigrant populations through his River Rouge plant. This industrial cathedral became a symbol of hope for prospective employees, who would wait for months in front of its employment building, eagerly hoping to be hired. For foreign immigrants, it represented the promise of a successful future.
The Ford Plant employed over 50,000 individuals from various Western European countries such as Poland, Lithuania, and Germany. Henry Ford played a paternal role towards his workforce by offering educational programs to teach illiterate employees how to read English.
In addition to that, he implemented unique policies like company picnics and dinners which were considered unusual and brilliant at that time.
One of Ford’s most controversial actions was his decision to hire criminals. It was reported that thousands of former criminals were hired by Ford over the years, all at Mr. Ford’s request. This decision raised many questions and surprised everyone, especially considering the high demand to work at Ford. People wondered why Henry Ford would take the risk of hiring potentially dangerous felons. Harry Bennett, Ford’s right-hand man, stated that Ford had a sympathetic view towards criminals and believed in their rehabilitation. The new workers not only pleased Henry Ford but also benefited the company. The controversial policy of hiring criminals by Ford not only surprised the River Rouge workers but also gained national attention through news articles. This unintentionally provided free advertising for Ford. Despite occasional eccentric ideas, Ford’s strategies helped market the company positively.
In 1914, Henry Ford hired John R. Lee to update the company’s labor policies. The plan was to divide $5/day into equal parts of wages and profits. However, employees would only receive profits if they met specific efficiency standards and were approved by the sociology department. On January 5, 1914, Henry Ford made an announcement about the groundbreaking $5/day plan, which generated widespread coverage in newspapers nationwide. The Detroit Journal described it as a surprise to labor leaders and a source of concern for manufacturers. The plan included a minimum wage of $5/day and a profit-sharing initiative for male employees in Ford plants. This unprecedented offer attracted a large number of workers to Detroit, as no other automobile company provided such generous compensation. While initially impressive, the $5/day plan also gave Ford more control over his workers and was considered an early attempt at implementing a corporate welfare program. Ford’s objective was to ensure the prosperity of his company, with the well-being of his employees being an important component.
The establishment of the Sociology department within Henry Ford’s company allowed him to exploit his employees’ personal lives, while also creating a close-knit community free from corruption. With over 1000 informers monitoring daily activities at the plant, theft and illegal plans were reported. Social workers conducted extensive interviews on topics such as household finances and sexual patterns. Ford officials believed that intruding into workers’ personal lives was a small sacrifice for increased wages, efficiency, production, and ultimately profits. Critics argued that this socialist system violated workers’ democratic rights, particularly their right to privacy. However, it is important to note that acting like robots was not necessary for job retention. Some saw Henry Ford as a paternal figure who fostered stability and order within his company – qualities essential for success in corporations during the early 20th century. This approach contributed significantly to financial success, with earnings increasing from $25 million between 1914 and 1921 to $78 million dollars.In 1923, there were 6,221 passenger cars in Detroit – equating to one car for every 6.1 persons. Among these cars, Fords made up about 41% of the total production. Ford’s actions were sometimes unconventional and his policies controversial, but they were not driven by greed. In fact, these qualities symbolized the success of his company. During the Great Depression, Ford provided opportunities to marginalized individuals, sparking a debate. However, he had legitimate reasons for this decision – he wanted morally upright employees who could offer loyalty, leadership, and trust to The Ford Motor Company. As a result of this approach, the company achieved financial prosperity. Despite being aware that not everyone would support him, Ford understood that taking risks was necessary. Surprisingly enough, his desire to expand the company and witness its remarkable growth has become a reality today.
Source: American Decades 1910-1919 New York: Gale Research Co., 1996
A recent study on the history of Henry Ford and the Ford Motor Company.
Collier, Peter. An American Epic. New York: Summit Books Co., 1987.
Examining the political and financial triumphs of the Ford family in a chronological manner.
Lacey, Robert. Ford, The Men And The Machine. New York: Ballantine Books Co., 1986. A closer examination of the Ford family and the controversy surrounding the triumph of the Ford Motor Company.
Marcus, Paul: Ford: We Never Called Him Henry. New York: Tom Doherty Associates Co., 1951, 1987. This primary piece of literature, written by Harry Bennett, provides personal insights into the life of Henry Ford, encompassing conspiracy and controversy.
Primary Source: The Annals of America, published by Encyclopedia Britannica in 1976.
A primary source discussing the financial achievements of the Ford Motor Company and its implemented financial policies.
Video: The Great Depression (no other information available)
An interesting presentation offered by past employees of the Ford Motor Company re-telling the triumphs and demise of the Ford Motor Company.
