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The Growth of U.

S Enterprise

Background engineers become managers of enterprises American Machinist was interested in factory problem a place for everything and everything in its place specific lines of duty for each man good workers rarely made good supervisors James Waring See - Consulting Engineers good supervisors should be tactful & understanding advocated paying high wages to attract better workers standardization of tools other techniques to better shop management ASME addressed issues of factory operation & management emphasis was on the shop, manufacturing, not the whole organization presented paper "The Engineer as an Economist" combination of mechanical & businessmen qualities is essential to management of industrial works management of works Henry R. Towne - President of Yale & Towne Manufacturing Company Engineers proposed ASME create economic section for shop management & shop accounting shop accounting organization shop management responsibility reports executive management of works, mills & factories time & wage system determination & allocation of cost methods of bookkeeping manufacturing accounts shop order system of accounts that used cards to facilitate coordination & control Henry Metcalfe - Springfield Armory record amount of labor spent & material used card used to determine direct& indirect cost FW Taylor of Midvale Steel had used similar system setting standards for tools quality & quantity of work coordination of workflow through scheduling & routing

The Renaissance of Systematic Management

systematic management

wage incentives accounting for cost assigning responsibilities handling labor problems

Jean Baptiste Say Edward Atkinson difference in management will alter result, in the same place, at the same time, in the use of similar machinery function of management : forecasting, planning, organizing internal economies could be attained by more efficient management founder of Cambridge Economist Alfred & Mary Paley Marshall inclusion of management as agent of production organize better Lenny Martini - 29006014 advantage of management better relation extend business increasing return & profit had lest impact in management thought labor unrest intemperance problems poverty slums child & female labor low productivity solution by Richard T. Elly rule & legislation

Ch. 6 - History of Management Thought

profit sharing The Labor Question trade unions arbitration of industrial disputes other solutions cooperative stores for workers national legislation about hiring & firing incentive to obtain worker cooperation & stimulate response to improve output payment based on performance Synopsis of Early Management Thought solution by Adam Smith high wages lump of labor phenomenon

Industrial Growth & Systematic Management

Summary of Part I
solution by David Schloss

People seek satisfaction of their needs through organized efforts, giving rise to management as an activity

Commodore Cornelius Vanderbilt Daniel Drew

bribing New York state legislature manipulating stock

watering stock

Early civilizations: parochial view of management function in the military, the household, the church, and government


Collis P. Huntington & Leland Standford John D. Rockefeller

purchased to legislator conspiring to get rebates owned 2/3 nation's steel industry

The cul t ural rebirth established preconditions for industrialization

Andrew Carnegie

Industrial Revolution in England; creates factory system & managerial problems

social Darwinism struggle for existence motivation of Baron

Focus on human problems : Owen

survival of the fittest mergers business leaders gave bribes when politician forced them to

Focus on organization and methods: Babbage, Dupin, Montgomery and Ure Industrial Revolution in antebellum America

Business & Society 2 legal principles

notion of limited charter powers management as trustee of the stockholders' property


Ezra Cornell
Focus on organization and methods : McCallum, Poor Focus on human problems : Poor

found college in Ithaca found college Rhode Island College college in Baltimore Methodist seminary

William Colgate benefactors Moses Brown Johns Hopkins

Post civil War : The Expansion of Industry

Systematic management : a prelude to scientific management

Cornellius Vandermilt

attempts to form labor unions in US less successful

Big business & its changing environment

Business & Labor

Labor violence fueled public fears of union American Federation of Labor as one successful union immigration provided a growing work force increased supply of labor did not result in lower wages US worker benefited from the growth of industry in terms of employment & real income railroad fostered a retailing revolution railroad facilitated interstate commerce four times zone as solution of time confusedness inventors pushing forward nation's capacity to produce more, to create jobs Inventive & Innovative Impulses growth of enterprise in terms of scale and scope scale = increased size of a single operating unit making a single product scope = the processes within a single operating unit to distribute more than one product

early inventions were the basis of emerging large-scale enterprise seeds of systematic management & rationalization appear to have been operational in the public as well as the private sector civil service reform must extend beyond personnel matters into the organization & methods of government offices what government can properly and successfully do Woodrow Wilson recommended administrative study how it can do these proper things with the utmost possible efficiency and the least possible cost either of money or energy

bringing improved system and methods to government Business & Government few effective efforts at the regulation of business Granger laws Interstate Commerce Act Sherman Antitrust Act Wilson-Gorman Tax Act political environment remained relatively laissez-faire Sherman Antitrust Act check corporate trust & monopoly practices

regulation about railroads

6- Industrial Growth & Systematic Management - Lenny 29006014.mmap - 22/09/2006 -