Page 136 - (DK) The Business Book

134 YOUR WORKERS ARE YOUR CUSTOMERS

ost economic models
IN CONTEXT state that during the
M early stages of economic
FOCUS
development, low-wage workers
Market expansion
find themselves making products
KEY DATES that are bought by middle- and
1914 Henry Ford doubles his upper-class consumers. The
employees’ wages to $5 a day. workers tend to eat simple food,
such as potatoes, rice, or corn,
1947 US psychologist Alfred J.
and travel on foot or—if they are
Marrow finds that productivity lucky—use a bicycle as a means
increases when employees are of transportation. Meanwhile, their
involved in decision making, employers eat expensive meat-
and introduces the concept based meals, and travel in
of participative management. luxurious transportation—from The Ford Motor Company quickly
the fine horse carriages of the 17th realized that its production line was
1957 Douglas McGregor
century to the sleek, “dream efficient but made workers unhappy.
publishes The Human Side By giving them a large pay rise, Ford
machine” automobiles of today.
of Enterprise, claiming that created a market of staff-customers.
However, economic growth
organizations thrive best by
takes a huge step forward when
trusting staff to apply their
workers are able to buy the products Model T automobile was priced at
creativity and ingenuity to the
that they make; when they, too, can $825 in 1908, at a time when Ford
enterprise in which they work.
afford to eat meat and purchase workers earned less than $2 a day.
1993 Ricardo Semler of Brazil’s household and leisure goods. This In 1913, Ford introduced a system
Semco writes Maverick!. is now starting to happen rapidly in of conveyor-belt mass production,
China, where the the sales of staple reducing the time taken to make
2011 Google is revealed
products—such as toilet paper and a Model T from 750 to 93 minutes.
to have the highest job
refrigerators—are growing quickly. With this improvement in efficiency,
satisfaction in the US high- the company could afford to cut the
tech sector; young “Googlers” Building a market price of one of its vehicles to $550.
are both employees and Workers were recognized as One problem remained, however.
customers of the company. potential customers by US car- The repetitive jobs required to run
making pioneer Henry Ford. Ford’s the Model T production line made

Companies should focus on They should also reward
providing consumers with their employees with the This enables employees
good products and to buy the company’s
highest wages possible. products or services.
services at low prices.

They can then provide
If your workers become management with
your customers, your valuable insights
business will thrive. and ideas, as well as
boosting sales.