Henry Ford, a  Master of Innovations

Henry Ford (1863-1947) was initially a brilliant mechanic. In 1896, he completed his first car. By 1903,  he and  established  the Ford Motor Company. Within just five years, eight different generations of Ford cars were introduced, including the famous Model T. Ford became an industrial innovator with three key ideas:

1. First, he promoted the development of mass production technology. Previously, each worker assembled a car with hundreds of components individually; now, each worker only had to perform a few specific steps. This shift greatly improved specialization and product quality.

2. Second, Ford recognized that the company could generate more revenue by selling a larger volume of products at lower prices rather than the opposite. If high-quality products were available at affordable prices, it would satisfy the growing global demand. Ford did not believe in manufacturing expensive cars for wealthy buyers. While many expected that lowering car prices would drive the company toward bankruptcy, Ford anticipated rapid market expansion. With mass production, prices dropped significantly. The Model T, for instance, was priced at only $950 in 1909-1910, and by 1919, that price fell to $355. Ford was right; the market expanded quickly, and he built the world’s largest corporation in Highland Park. Production increased from 6,000 cars to 35,000 units. Although the number of cars sold surged nearly sixfold, the workforce only increased about twofold. In the 1920s, the company hired an additional 50,000 employees and produced 4,000 cars daily. In 1921 alone, 5 million cars were manufactured, and by the end of the decade, 15 million cars had been produced using mass production lines.

3.Henry Ford was also a pioneer of the welfare state through the consumer society. He believed that business was not just about making money but also about creating products that improve people's quality of life. Ford aimed to enhance the living standards of his employees and reduce turnover. He understood that efficiency depended on hiring and retaining the best workers. On January 5, 1914, he announced a $5-a-day compensation program, which also included a reduction in working hours from nine to eight hours a day, five days a week, and an increase in daily wages from $2.34 to $5 for skilled workers. Ford faced criticism from Wall Street for introducing the 40-hour workweek and for setting a minimum wage. However, it proved beneficial as this wage allowed workers to buy the cars they produced, which, in turn, helped the economy. Ford referred to this wage increase as a form of profit-sharing. The $5 salary was offered to men over the age of twenty-two who had worked at Ford for six months or more and, importantly, led lives approved by the "Department of Sociology." This department, employing 150 researchers, ensured that employees maintained certain standards, disapproving of excessive drinking or gambling.

Henry Ford was raised in the Episcopalian faith, although he was not a devout believer. He held a pragmatic view of religion, believing in God but trusting that God managed the world's affairs. He expressed confidence that God handled the world's affairs, and that there was no need to worry too much about the future. At the age of 26, he encountered the concept of reincarnation, which shaped his belief that human progress is cumulative and that people should have opportunities to improve their lives. This philosophy influenced his decision to double the minimum wage of his workers in 1914, reduce the working week from nine to eight hours, and enhance living conditions both at work and outside of it.

 Despite his achievements, there were negative aspects to Ford’s legacy. He adhered to conspiracy theories, believing that Jewish banks would take over the U.S. market. Ford was staunchly against unions in his factories. To counter union activities, he appointed Harry Bennett, a former Navy boxer, to lead the Service Department. Bennett employed various intimidation tactics to dismantle union organization. He also faced ridicule for saying, "History is just shit," a statement reflecting his view that education should focus on teaching people how to think critically and innovatively rather than merely memorizing facts. Most people, whether highly paid or not, tend to choose jobs that require little thought, while Ford admired Thomas Edison’s inventive thinking. Ford believed that investing in one's thinking capacity would yield the best results.  He referred to the synergy of economic laws, scientific principles, and human behavior as the Universal Code, a set of fundamental principles applicable across industries to achieve efficiency, innovation, and success