As Henry Ford built his automobile company, he was famous for his industrial leadership but also for his harsh behavior towards managers and employees. He paid ___________ of $5.00 per day to entice his employees to stay with Ford.

Question

Quizplus · Accepted Answer

The payment of $5.00 per day can be classified as an efficiency wage - a higher-than-market wage that is designed to attract and retain the most productive workers. This was a strategic move by Henry Ford to reduce employee turnover and increase productivity, as he believed that a stable and motivated workforce was critical to his business success.

As Henry Ford Built His Automobile Company, He Was Famous