Ford's strategy of building a car for the masses was made possible by the combination of the Model T and the moving assembly line. Unfortunately for the Ford Motor Company, Henry Ford came to believe that the "T" was the perfect car. He responded to the competitive challenges of the 1920s by focusing almost exclusively on the production process rather than the product itself. By slighting product innovation, Ford gave General Motors the opportunity to catch and then pass Ford. By 1927, the beloved 'T" was no longer a viable product. The car that made the Ford Motor Company the envy of the world was taken out of production and replaced by the Model A. An era in automobile manufacturing had ended.

The Five-Dollar DayAssembly line-based mass production solved some problems for Ford and it also created new ones. The new machine-paced work systems aggravated problems of labor turnover. Between October 1912 and October 1913, Ford hired 54.000 workers in order to maintain a work force of 13.000. The annual turnover rate was 416 percent and daily absenteeism ran between 10 and 20 percent. Ford initially tried periodic wage increases based on supervisors' recommendations but this failed to slow down the turnover. The industrial Workers of the World became active in Detroit and were attempting to organize Ford workers and other autoworkers. Ford clearly needed a new strategy. On January 5. 1914, Ford Motor Company announced the five-dollar, eight-hour day. The company stated that all but 10 percent of the employees will at once share in the profits." The announcement was regarded as revolutionary by Ford's business colleagues and the business press. The Wall Street Journal accused Ford of promoting socialism by paying such high wages. Others accused Ford of damaging the work ethic of American workers by paying them too much money. After the announcement, there were riots at the Sates of the Ford Motor Company as job seekers sought employment at such high wages.

What the company announced was not a plan to pay workers an hourly rate equivalent to five dollars a day. Instead, the company announced a plan to allow the workers to share in the company profits at a rate that promised five dollars a day. The company paid the daily rate and recorded the profits for which the employee would be paid. A worker who failed to qualify for the five-dollar day would receive only the daily rate which, for laborers, was 52.34. Those who did qualify received their profit sharing on a bi-weekly basis.

The five-dollar profit sharing plan was designed by the company to include only those who were "worthy" and who would "not debauch the additional money he receives." The rules governing eligibility were:

"Every male employee over 22 years of age who leads a clean, sober and industrious life, and who can prove he has thrifty habits, is eligible to share in profits.

"Every married man, no matter what age, who can qualify as to sobriety, industry and cleanliness can participate if he is living with his family.

"Every young man under 22 years of age who is the sole support of a widowed mother, or next of kin, and who leads a clean and sober and industrious life, can participate.

"All women employed by the company who are deserving and who have some relatives solely dependent upon them for support can receive benefits through profit sharing."

To insure only deserving workers received the money, Ford established the Sociological Department to administer the program and to investigate the home lives of workers. Investigators from the Sociological Department visited workers' homes and suggested ways to achieve the company's standards for "better morals," sanitary living conditions, and "habits of thrift and saving.

After a probationary period, and upon the recommendation of their supervisor. workers, would be investigated as to eligibility Roughly 60 percent of Ford workers were ruled eligible for profit sharing. The other 40 percent included probationary employees or employees who were otherwise ineligible. Employees who had met the requirements and then had fallen into "evil ways" were removed from the system and given a chance to redeem themselves. Long-term failure to meet Ford Motor Company standards resulted in dismissal from the company.

The five-dollar day made Henry Ford a folk hero in America. He was regarded by many as an employer who truly shared the wealth with his employees. The dark side of the five-dollar day - the investigation of employees and setting standards for behavior away from work- war, not widely known. The five-dollar day, for those who qualified, helped raise living standards and resulted in better material lives. Many Ford employees felt that the compromise over one's home life was worth the additional money.