History of Management Thought Daniel A. Wren Chapter 6

1. 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
organization
Henry R. Towne - President of Yale & Towne
Manufacturing Company
responsibility
shop management
reports
Engineers
proposed ASME create economic section for
shop management & shop accounting
executive management of works, mills & factories
time & wage system
shop accounting
determination & allocation of cost
methods of bookkeeping
manufacturing accounts
shop order system of accounts that used
cards to facilitate coordination & control
record amount of labor spent & material used
Henry Metcalfe - Springfield Armory
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
systematic management
The Renaissance of
Systematic Management
wage incentives
accounting for cost
assigning responsibilities
handling labor problems
Jean Baptiste Say
difference in management will alter result, in the same place, at the same
time, in the use of similar machinery
Edward Atkinson
function of management : forecasting, planning, organizing
internal economies could be attained by more efficient management
founder of Cambridge
Economist
inclusion of management as agent of production
Alfred & Mary Paley Marshall
organize better
Lenny Martini - 29006014
advantage of management
better relation
extend business
Ch. 6 - History of Management Thought
increasing return & profit
had lest impact in management thought
labor unrest
intemperance
poverty
problems
slums
child & female labor
low productivity
solution by Richard T. Elly
rule & legislation
profit sharing
trade unions
The Labor Question
arbitration of industrial disputes
Industrial Growth &
Systematic
Management
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
Summary of Part I
solution by David Schloss
People seek satisfaction of their
needs through organized efforts,
giving rise to management as an
activity
lump of labor phenomenon
Commodore Cornelius
Vanderbilt
bribing New York state legislature
manipulating stock
Daniel Drew
Early civilizations: parochial view
of management function in the
military, the household, the
church, and government
watering stock
The cul ural rebirth established
t
preconditions for industrialization
purchased to legislator
conspiring to get rebates
Andrew Carnegie
owned 2/3 nation's steel industry
social Darwinism
Industrial Revolution in England;
creates factory system &
managerial problems
Focus on organization and
methods: Babbage, Dupin,
Montgomery and Ure
Collis P. Huntington
& Leland Standford
John D. Rockefeller
barons
struggle for existence
motivation of Baron
Focus on human problems : Owen
survival of the fittest
mergers
Business & Society
business leaders gave bribes when politician forced them to
2 legal principles
Industrial Revolution in antebellum
America
notion of limited charter powers
management as trustee of the stockholders' property
philanthropy
Ezra Cornell
Focus on organization and methods
: McCallum, Poor
Focus on human problems : Poor
William Colgate
benefactors
Post civil War :
The Expansion of Industry
Moses Brown
Johns Hopkins
found college in Ithaca
found college
Rhode Island College
college in Baltimore
Cornellius Vandermilt
Systematic management : a
prelude to scientific management
Methodist seminary
attempts to form labor unions in US less successful
Labor violence fueled public fears of union
Big business & its
changing environment
American Federation of Labor as one successful union
Business & Labor
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
regulation about railroads
Sherman Antitrust Act
Granger laws
Interstate Commerce Act
Sherman Antitrust Act
Wilson-Gorman Tax Act
political environment remained relatively laissez-faire
6- Industrial Growth & Systematic Management - Lenny 29006014.mmap - 22/09/2006 -
check corporate trust & monopoly practices