Principels of Management ; Discssion Board 1 and 2 - Essay Example

Discussion 2 Managers make numerous decisions in their day-to-day operations of a corporation. Good decisions lead to the success of a business venture or a company. Henry Ford decided to double the wages of his employees in 1914. Ford increases the salary of his employees so that they can afford to buy their products. The company was growing in popularity, and Ford increases the salary of his employees to improve the living standards of his employees. It was a strategy to market his product to the outside world.

The main reason for increasing the wages of its employees is to reduce employee turnover rate. An increase in the wages of the employees can reduce the cost associated with employees (Harnish, 26). Most managers want to improve the general performance of the corporation or company. Henry Ford optimizes and decides that the company is becoming too much successful especially in the production of the car model T. Ford took a big risk in determining that the company was successful Henry Ford took a chance in making the decision, and it made significant changes in the sales of the cars in the following year.

The risk helped in insuring the class of workers who had the ability to buy the products they were manufacturing. The decision to increase the wages of their employees was creative. It was a radical decision made a top-level manager by the Ford Company. The company expanded its market for the Ford Model T. Statistics indicate after announcing that he will increase the wages of their employees the labor turnover rate drastically reduced. Fords decision helped the company increase the production level of cars by 30% (Krippendorff, 5).

Work Cited Harnish, Verne. The Greatest Business Decisions Of All Time. New York, N.Y.: Fortune Books, 2012. Print. Krippendorff, Kaihan. Leadership. The Greatest Business Decisions of all time 1.1 (2012): 10. Print.