Henry Ford《My Life and Work》· Chapter X, “How Cheaply Can Things Be Made?” · Leadership · Growth · Action
The payment of five dollars a day for an eight-hour day was one of the finest cost-cutting moves we ever made, and the six-dollar day wage is cheaper than the five.
Higher wages can be a cost-cutting and productivity innovation.
Context
Ford's five-dollar day was announced in 1914 as a profit-sharing plan that roughly doubled many workers' daily income. He called it one of the finest cost-cutting moves the company ever made, because better-paid workers were more efficient and less likely to leave. Ford treated wages as an investment in productivity and in a mass market, not merely as an expense.
Today's question
Does your organization see wages as a cost to cut—or as an investment in efficiency?
Peace being concluded, and the association business therefore at an end, I turn'd my thoughts again to the affair of establishing an academy. The first step I took was to associate in the design a number of active…
Peace being concluded, and the association business therefore at an end, I turn'd my thoughts again to the affair of establishing an academy. The first step I took was to associate in the design a number of active…
Ralph, though married, and having one child, had determined to accompany me in this voyage. It was thought he intended to establish a correspondence, and obtain goods to sell on commission; but I found afterwards, that,…
Andrew Carnegie:Autobiography of Andrew Carnegie, Excerpt 57
Andrew Carnegie《Autobiography of Andrew Carnegie》· Chapter IX · Leadership
"Ah, gentlemen," I said, "there is the point. A little more money and you could have had the indestructible wrought-iron and your bridge would stand against any steamboat. We never have built and we never will build a cheap bridge. Ours don't fall."