summary of Wren book Chapter 6

1. INDUSTRIAL GROWTH AND
SYSTEMATIC
MANAGEMENT
(Daniel A. Wren)
Wardah Naili Ulfah
29013024

2. Background
Influenced by Industrial Revolution that
had been happen before.
It is spawned the textile industry and
created big business in transportation
and communication.
Together those forces combine to create
the growth of large-scale organization
with a systematic management.

3. Objectives
Describe :
 How the revolution resumed in the growth of
enterprise.
 Discus the renaissance of systematic
management
 Examine the economic, social, political and
technological situations
In the United States on the eve of the scientific
management era.

4. Industrial Growth
It shows early ideas about systematic
management. Depict the relative emphases of
management pioneers.

5. The Growth of U.S. Enterprise
Background of a tragic pause in the move of the
United States toward world industrial leadership.

6. The Accumulation of
Resources
Transportation
and
Communication
Industria
l growth
The
accumulation
of resources

7. Carnegie and The Growth of
Enterprise
Andrew Carniege
Found a way to combine technology and
management to create more job, reduce
prices, expand markets and advance industrial
development.

8. The Renaissance ofSystematic
Management
Indicators:
 Growth of steel industry.
 Old industry revitalized and new ones emerged.
 Capital-intensive industries.
 The growth of managerial hierarchy.

9. Engineers and Economists



Economists judged had less impact than
mechanical engineers.
The perceived problem resided in factory
management.
Methods and system that issues of relations
between labor and capital, then referred to as
labor question or labor problem

10. The Labor Question

11. The Labor Question
Prepared situation to inherent systematic
management:
 The growth of the organization
 The accumulation of resources
 The debate of labor question
 The need for resource rationalization became
apparent.

12. Big Business and Its Changing
Environment
To examine notions of
business and society.

13. Business and Society: Barons or
Benefactors?
As times has change:
 Income and inheritance taxes make it difficult
to accumulate.
 The legal question of corporate philanthropy
has been clarified.
 Public expectations about the role of business
in society have changed.

14. Business and Labor: The
Condition of The Worker
Some of labor organizations were found.
 The National Labor Union (Willian H. Sylvis)
 The Noble Order of the Knights of Labor
 Labor Violence (1880 & 1890)
 The Molly Maguires Terrorized
 The Haymarket Affair (1886)
 The Pullman Strike (1894)
 The American Federation of Labor (1886)

15. Inventive and Innovative
Impulses








Union Pacific and The Central Pacific railroads
(1869)
The sleeping car (1865)
The air brake (1868)
Standardization of time on the railways (1833)
Telegraph
Telephone
Sewing machines
Grain harvester

16. Business and Government: The
Seeds of Reform




Stability in the governmental infrastructure
Progressiveness of US government
Effectiveness of national policy
Tax adjustment policy

17. Final Judgement
Industrial Growth start with the expansion of
railroad industry. Its emerged growth in other
businesses,
such
as
transportation, communication, machine making
and power sources. This growth shows
businessman’s awareness in needed of
systematic management.
Systematic management was a prelude and
cohort of what came to be known as scientific
management.

18. What I’ve learned?
I have learned about growth, where the scope of
textile industry will affect transportation and
communication sectors to evolve.
In this case the growth of the textile industry
influence the growth of other industries, such as
railroads. Besides, there is also expand the
interest of either labor or politics.