Post-Fordism

The concept of post-Fordism was originally invented by the economist Robin Murray in the British magazine Marxism Today in 1988.^[1] It referred to the emergence of new production methods defined by flexible production, the individualization of labor relations and fragmentation of markets into distinct segments, after the stagnation and profitability crisis of rigid, bureaucratized Fordist production.^[2] The post-Fordist era is regarded as the successor of the Fordist epoch. The concept of "Fordism", as a distinct phase in de history of capitalist industrialization, was invented by Antonio Gramsci in 1934 and popularized in France by Michel Aglietta's book Régulation et crises du capitalisme in 1976.^[3] Since the 1980s, the concepts of "Fordism" and "post-Fordism" were widely adopted by labor economists in Europe and North America. However, the definitions provided for the nature and scope of post-Fordism vary considerably, and are a matter of debate among scholars.^[4]

Fordism was the leading business model for industrial mass production by corporations roughly from the 1910s to the 1960s, adopted during the great expansion of the manufacturing sector in North America, Europe and Japan (see also scientific management and time and motion study).^[5] Characteristic was a division of work tasks according to the assembly-line model perfected by Henry Ford, and the in-house organization at one large plant location of almost everything required for the enterprise to function (from machinery, manufacture and administration to cleaning, catering and maintenance). Some theorists of post-Fordism argue that the end of the superiority of the US economy is explained by the end of Fordism, across most of the world, and its replacement by more competitive and efficient production models invented mainly in Japan.

Post-Fordist production is a competitive business approach which aims to respond quickly, precisely and effectively to the existence of increased consumer choice as well as to the increased importance of the identity and personal development concerns that individuals have (as employees and as consumers). For this purpose, a great deal of effort goes into collecting consumer data and business data using information technology, to understand what the business trends and changes in consumer demand are. Post-Fordist production networks require much greater flexibility from their workforces, providing more variation in job roles for employees, more individualized labour relations, and more flexible production techniques such as lean manufacturing.^[6]

The post-Fordist enterprise is usually not one large plant at one location which produces everything almost necessary on-site, but instead a "hub" for a network of smaller specialized organizations at different locations, each of which contributes its own input or service in support of the main output, according to specific contractual agreements. This approach was often found to be more cost-effective, competitive and flexible, in responding/adjusting to changes in business or market requirements; resources are only held, supplied or used where and when they are actually needed. The post-Fordist organization usually consists of a group or network of affiliated companies working together to produce products and services. Some of these companies could be owned as subsidiaries by the parent company, but the associated companies could also be independent (outsourced) contractors that supply a variety of clients. This can make it less easy for an outsider to grasp how the whole organization operates, because the total work process is not contained (or visibly present) at just one site, building, factory or office at one place. There are multiple locations within one country, and sometimes across several countries.