3. Introduction……..
• Two prime examples of this new approach to management are
found:
• Bolton and Watt’s Soho Foundry
• Robert Owen’s New Lanark Mill.
• An improvement in manufacturing techniques and the
development of a new approach to management
• The industrial revolution brought with it a breakdown
in the provincialism of management concepts
19. PrinciPle and
Work
• In 1767 Steuart published ‘An
Inquiry into the Principles of
Political Economy’
• Steuart was one of the last
representatives of the mercantilist
school of economic though
• the work appears to have been
well received its impact was
overshadowed by Smith's Wealth
of Nations that was published only
nine years later
21. adaM SMiTHadaM SMiTH
• He was a Scottish moral philosopher and
a pioneer of political economy.
• Born: 5 June 1723 OS Kirkcaldy, Fife,
Scotland
• Died:17 July 1790 (aged 67) Edinburgh,
Scotland
• Nationality : British (Scottish)
• Smith is cited as the "father of modern
economics"
22. WORK AND PRINCIPLE
• The Wealth of Nations, is
considered his magnum opus and
the first modern work of
economics.
• He is often touted as the world's
first free-market capitalist.
• A whole work can be broken into
smaller parts and done by many
workers
24. RICHARD ARKWRIGHTRICHARD ARKWRIGHT
• He was a self-made man and a leading
entrepreneur during the early Industrial
Revolution
• Born: December 23, 1732, Preston,
United Kingdom
• Died: August 3, 1792, Cromford, United
Kingdom
25. WORK AND PRINCIPLE
• He provided the managerial techniques
for the successful coordination of men ,
money , materials and machines in a
large scale production,
• He was the developer and practitioner of
concepts in personnel management
• Strict discipline was not maintained
• he is credited with inventing the
spinning frame, which, following the
transition to water power was renamed
the water frame
27. A TRANSITION PHASE
• By the latter part of
the1700s the birth pangs
of the industrial revolution
had begun to subside.
• The application of
scientific principles of
management between the
years 1785 and 1835.
28. SOHO FOUNDARY
• The first Soho Foundry opened in
Birmingham, England on Jan 30,
1796 to manufacture steam
engines. Partners were Mathew
Boulton and James Watt.
• James Watt was given the
distinction of being the man who
invented the steam engine.
• In1800 their two sons changed
the name .
29. Important Fact
Extensive use was made of detailed
operating plans
The method employed in planning
were scientific
The production processes were
organized on the basis of machine
and worker
31. Born: Newtown, Wales
Industrialist , New Lanark ,
Scotland
The father of modern
personnel management
•Owen’s philosophy was-
“Man is the creature of
circumstances”
Robert Owen
32. Owen believed that machines diminished humans,
and they can, but New Lanark flourished because it
produced an in-demand product competitively.
34. A pioneer in workers welfare programs
House for workers with two rooms
Minimum working age for children
10,working hour 10
Schooling of workers children
Evening recreation center established
NEW LANARK
35. New Lanark succeeded within the free market. It was
“Socialism” WITHIN Capitalism. Simply because it’s set in
nature, an agrarian commune isn’t some Garden of Eden,
automatically. “Self-Sufficiency” is no panacea.
38. The Beginning of American societyThe Beginning of American society
39. Development & application of American System
Development of cost accounting system
Father of the American system is Eli Whitney
Development of quality control procedure
Recognition of the principle of span
management