A Comparative Analysis of the Incentive Systems under Taylorism and Fordism
Journal Title: STORIA DEL PENSIERO ECONOMICO
Author/s: Maurizio Lisciandra
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A comparative analysis of the incentive systems under taylorism and fordism existing - Lliterature on Taylorism has surprisingly ignored the role of its payment systems, while the results achieved on Ford’s five-dollar day programme appear contradictory and sometimes isolated from the organisational change simultaneously undertaken. I seek to fill these theoretical gaps. I provide a historical analysis of the relevant features of Taylorism and Fordism and analyse a simple agency model with a linear compensation scheme to account for the observed differences in payment systems between Taylor’s performance-related pay and Ford’s fixed wages. I show how the ex-post observed divergence may be interpreted in terms of technology-related differences in i) responsiveness of effort to incentives and ii) responsiveness of proceeds to effort. JEL classification: D8; J3; J41; L2. Keywords: Taylorism; Fordism; agency theory; labour contracts; incentives.
Maurizio Lisciandra, in "STORIA DEL PENSIERO ECONOMICO" 2/2008, pp. 65-89, DOI:10.3280/SPE2008-002003