This presentation is about the use of technology in change management. We will review how technology facilitates changes management. Then recommend best practice for changing management. This presentation begins by analyzing the report by Mondal (2011) called “Entrepreneurship in U.S. Auto Industry: Ford Stay Ahead.” Henry Ford is the founder of Ford Motor Company. As a successful entrepreneur Ford’s practice included technological innovation for cost cutting measure, introduction of new products, expansion of new market and created new economic organization. Using Schumpeter’s five factor model we will analyze entrepreneurship around innovation.
Ford’s Technology in Change Management
In Ford’s initial years, innovation technology was used to remodel the most popular model cars; this increase profit for the business. It used to take Ford 14 hours to build the T model car; he reduced labor cost using a time known as “mass production method.” This method reduced the assembly time to1 hr. 33 minutes. This innovation technology reduced labor cost for the new Model T (Mondal, 2011).
Entrepreneur take risk: by creating new products, adapts to new production process, create new market, and create new technology and economic for an organization. According to Michaelides & Kardasi (2010) development depends upon “innovation.” This concept includes an introduction of new goods, new methods of production; the opening of a new market, conquest of a new source of supply and carries out
Ford hired Fredrick Taylor, a motion study expert, to evaluate and refine the efficiency of his factories after years of trying to find ways himself (History.com, 2009). Taylor took what he saw in the factories to make a more efficient workforce while Henry Ford developed tools and equipment to help with a better flow of the workforce. Together, they realized four distinct things from other smaller businesses that they wanted to immolate and bring to the big stage. These four principles were the use of interchangeable parts, division of labor, continuous flow, and reduced wasted effort (Science Odyssey, 1998). With these four principles in mind and the dream to produce a more cost efficient vehicle, Henry Ford and Fredrick Taylor created the first large scale assembly line in 1913 (Goss, 2014). This assembly line was able to transfer the time it took to build a single Model T from twelve hours to a mere two hours and thirty minutes (History.com, 2009). With its eighty-four distinct steps in the flow of the assembly line, a division of labor was created where a worker could be trained to do one specific task making him more efficient at that task and able to do a much better job (History.com, 2009). Secondly, having interchangeable parts that would could be used between any model of Ford allowed Henry to focus on machinery that would produce these
Change Management is a modification in an organizations practice. It is instituted to profit the company and to improve the system. From the mid-2000s, change management has developed enduring landscapes for any organizations as if it’s related to business field or health care industry. In order to be in today’s competitive market; change management is very important part of any company (Aguirre & Alpern 2014). Technology and advancements is rapidly expanding and changing working organizations’ everyday atmosphere. Due to economic changes many businesses are being obliged to merged or downsized with other companies in order to increase their financial stability. Change management stepped in when employers or employees couldn’t keep up with
As the demand for the Model T kept growing it rapidly became a dominant instrument in the swift changes occurring in the lives of the citizens of America. After added experimentation by Ford and his aids he moved the business to Highland Park, Michigan. As the manufacturing system evolved by 1913, a new and modified plant was built which was able to deliver parts, subassemblies and assemblies, both with precise timing to a constantly moving main assembly line. Although this new design of the assembly line saved time and money, and increased production, the one flaw was the work of the employees was still tedious and tiresome. The workers were involved, but also executed the same task again and again, psychologically wearing them down as the days pasted. Pushing his employees with strict offenses, Ford accomplished what the others in the industry could not, finding a way to build a reliable automobile quickly and inexpensively. However, he theoretically turned people into machine parts to complete the task.
In 1908 Henry Ford had constructed the Model T; the time it took him to create this automobile was 13 days. Now eager to achieve more, Ford knew that he needed a place to construct these cars. He also knew that to sell mass amounts he would have to sell cheap, and buy parts and supplies even cheaper (Douglas, 25). The construction of the first Ford Motor plant used the world’s only conveyer belt. This was part of the Fords plan to build fast, when he constructed the assembly line cars were pumped out in as fast as 15 minuets, this was down from 19 days. Ford was able to make the automobile a car for everyman, a working man with a family.
“With one workman doing a complete job he could turn out from thirty-five to forty pieces in a nine-hour day, or about twenty minutes to an assembly. What he did alone was then spread into twenty-nine operations; that cut down the assembly time to thirteen minutes” (Ford, 45). Ford had nearly cut the production time of one Ford Model T in half, allowing for more automobiles to be produced in a day. The Ford Motor Company was able to produce 150 Ford Model Ts every day and eventually reached nearly 10,000 Model Ts a day by 1925 (Sandler, 21). Each worker would contribute his skill at assembling a single part of the Model T, and once he completed his task he would pass the Model T on to the next worker in line along the assembly line, similar to the meat production factory in which Ford envisioned his idea. His idea soon caught on and became an idealistic way to mass produce products in America which soon caught on to other industries and continued to inspire the ways Americans would produce goods even to this day.
The assembly line Ford created for the production of the Model T had never been used in vehicle production. His invention made the production process fast and easy to mass produce the vehicle in a factory. The parts were forged and created for each section of the car and placed in a kit for the factory workers to have available to assemble each part of the car as it moved from station to station. As production of the Model T progressed they were able to
He constructed these cars by implementing the use of the assembly line. This new and bold technique produced cars every ninety-three minutes instead of the seven hundred and twenty eight minutes it took before (“Henry Ford”). This drastic time saver is going to change industries and production all across the globe. Now businesses could make things almost ten times as fast as before. This fast rate of production not only provided cars to be bought, but it made cars cheaper and available to the majority of the population.
Change management according to many becomes essential for the following reason: external pressure; which can encompass competition, new technology, cost, and regulation changes. Furthermore, economic and social conditions can escalate long-term change necessary. This paper will discuss several aspects of change management models, theories, and application thereof. In addition, it will provide overviews of the drivers of change, factors necessary for to implement change successfully, strategies and expectations of management, and leadership styles needed for influence and effectiveness.
Leading and managing change require a solid theoretical foundation. This assignment will research the theoretical elements of change and change management. Addressed will be the following: Organic Evolution of Change, Formulating Strategic Development Approaches, Leadership and Management Skills and Gathering and Analyze Data. As societies continue to evolve and changing demand creates the need for new products and services, businesses often are forced to make changes to stay competitive. The businesses that continue to survive and even thrive are usually the ones that most readily adapt to change. A variety of factors can cause a business to reevaluate its methods of operation. According to literature from the past two
The use of assembly lines for faster production played a major part in the Industrial Revolution since the strategy generated large profits for the factory owners. Assembly lines were used in the Ford Company which was the practice of moving the work from one worker to another until the product was finished (Nardo, United States 63). The strategy was shown to be very efficient and fast. For example, in 1909, Ford was making almost 11,000 Model Ts compared to the 65 cars the company had been building each year before assembly lines were used. In 1910, almost 19,000 Model Ts were built (Evans 18). A year after Ford’s introducing the assembly line, the amount of time to assemble a car reduced from 12 hours and 28 minutes to two hours and 38 minutes. After another year, the production time dropped to an hour and 33 minutes (DiBacco 125). By 1914, a car was coming down the assembly line every 40 seconds (Evans 19). Ford not only made millions of cars by 1920, but he also had spectacular sales. In 1916, Ford made and sold 739,000 Model Ts, which was half of all new cars made in the US (Nardo, United States 63). Assembly lines would later be used in other companies who hoped to bring a similar success rate in mass production and in sales as Ford did.
On December 1st, 1913 the automobile world changed. Henry Ford had installed the first moving assembly line for more efficient production of his Model T cars. The Model T was introduced in 1908 but was unfortunately expensive to make. Ford wanted to build a car affordable by the majority of people, and to do this, he had to come up with a way to lower the cost of making the car. Before the assembly line, Ford was working hard to increase productivity. The Model T’s manufacturing process was broken down to 84 steps and each worker was trained to do only one step of the process. Ford also built machines that would create parts faster than any person could. Inspired by production methods by canneries and such places, Henry Ford installed rope
In 1908 Ford created the Model T, the first affordable vehicle for the working class family, and the first vehicle to be built using mass production and the assembly line. Ford’s vehicles took entirely to long from start to finish. “In 1913, Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to two hours and 30 minutes.” When the process of building a
One cannot discuss the impacts of the American automotive industry without giving due credit to Henry Ford. While Ford did not create the first gas powered car, nor the first assembly line, he did revolutionize both (Voice of America, 2012). He was an accomplished machinist and one day he discovered a gas powered machine called a Silent Otto (Voice of America, 2012). Henry was a self-motivated independent learner who relished innovative challenges. As his innovations developed marketable products, Ford insisted on making cars that were affordable for everyone. The improvements he made to assembly line manufacturing streamlined production and kept consumer costs low, even though he had to fight tooth and nail to retain this control.
Entrepreneurship is difficult to define throughout its history research. Even nowadays, this concept is still a debatable point (Rajendra, et al., 2017). Based on four decades of research, Gartner (1988) concludes that entrepreneurs are founders of new firms. Shane and Venkataraman (2000) consider entrepreneurship as “a new venture’s risk-taking endeavor seeking an opportunity” and Fortunato (2014) adds innovative value into the concept of entrepreneurship. Thus, research on the definition of entrepreneurship continue. According to those diverse views, I will interpret six unique entrepreneurial characteristics and theoretically analyze each one. Risk taker, need for achievement and proactivity as my strengthens will be illustrated with my experience. Innovativeness, internal locus of control and tolerance for ambiguity are my weaknesses, thus I will describe relevant successful Entrepreneurs’ experiences.
1.1 The analysis must include consideration of two current schools of thought on change management and how they have contributed to organizational change