Social Impact
Ford exercised great personal control over every aspect of his company. He avoided the use of outside contractors and suppliers, preferring to make and develop his own materials and parts as much as possible. Ford shocked the world by raising his average wage to the unprecedented rate of $5.00 per day in 1914. In return, however, workers were subject to intense scrutiny both on and off the job. Ford required his employees not only to perform their jobs diligently and up to the standards, but to meet his personal ideals of conduct and morality. Before Ford developed the Model T, the automobile existed largely as an expensive car for the wealthy. Ford’s strategy turned the automobile into the transportation of choice for the middle class as well. As a result, the car was reliable, easy to fix, and affordable. After the second year, Ford either dropped the price or enhanced the features of the Model T every year, carrying out his goal of increasing the Model T’s value annually. The price of the Model T, initially $850 in 1908, dropped to as low as $260 in 1924, while the car’s quality improved.