Post-Fordism

Post-Fordism describes a shift in production methods that emerged in the 1980s in response to the stagnation and profitability crisis of Fordist production, which had become rigid, bureaucratic, and less profitable. Post-Fordism is defined by flexible production, the individualization of labor relations and fragmentation of markets into distinct segments. The concept of post-Fordism was originally invented by the economist Robin Murray in the British magazine Marxism Today in 1988.

The concept of "Fordism", as a distinct phase in the history of capitalist industrialization, was first developed by Antonio Gramsci in 1934. It gained further attention through Michel Aglietta's book Régulation et crises du capitalisme in 1976. Since the 1980s, the labels of "Fordism" and "post-Fordism" have been widely adopted by labor economists in Europe and North America. However, the exact definition of post-Fordism remains debated among scholars.

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). Characteristics of Fordism 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.

Unlike Fordist enterprises, which concentrate nearly all production on-site, in one location, the Post-Fordist enterprises act as a hub in a network of smaller, specialized organizations spread across different locations (nationally and internationally). Each organization contributes a specific input or service under contractual agreements. Many administrative, technical and maintenance tasks which are not considered to be part of the "core business" are outsourced. The Post-Fordist model is often more cost-effective, competitive, and flexible, because resources are only held or used when needed, allowing businesses to adapt more quickly to market changes.

Given that not all of the production process is centralized in one site, Post-Fordist enterprises usually involve a mix of subsidiaries (owned by the parent company) and out-sourced contractors This can make it difficult for outsiders to see how the whole system operates; unlike a typical Fordist factory, a lot of the work is not visibly carried out in one single location, building, or office, or company.