The Industrial Revolution created a new cultural environment and new management problems. Organizations changed by infusions of capital, division of labor, and the need for performance. The role of the entrepreneur-manager and its need was recognized.
THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen Chapter Three The Industrial Revolution: Problems and Perspective How was work done before the steam engine? Examples: Grinding grain, pumping water, transportation, etc Page, Brian steamrrengine05.jpg 1980 Pics4Learning Dec 2008 Milling Wheat into Flour A human turning a millstone can covert one-half bushel of wheat into flour in one hour Three bushels can be ground in one hour with a horsedriven mill A steam driven mill can 10 bushels per hour Steam Engine at British Science Museum Jones, D steameng.jpg Mar-02 Pics4Learning Dec 2008 The Industrial Revolution in Great Britain James Watt perfected the Steam Engine making it a reliable source of power for factories and transportation It became more economical to bring people to the work (factory) rather than taking the work home (domestic system) As factories grew, management/leadershi Watt Double-Acting Steam Engine A late version of a Watt double-acting steam engine, the steam engine that propelled the Industrial Revolution in Britain and the world, located in the lobby of the Superior Technical School of Industrial Engineers of the UPM (Madrid) “Entrepreneur” – Richard Cantillon Richard Cantillon, currency speculator Wrote Essay on the Nature of Commerce First to use the term entrepreneur in an economic sense “Entrepreneur” applied to anyone who bought or made a product at a certain cost to sell at an uncertain price Influenced Francois Quesnay, leader of the Physiocrats The Fourth Factor of Production Management joins land, labor and capital as a recognized factor of production J.B Say provided a more definitive explanation of the role of entrepreneur The entrepreneur became a manager for others and assumed an additional risk in combining the factors of land, labor, and capital Jean-Baptiste Say The Warren J Samuels Portrait Collection at Duke University Management Problems in the Early Factories Labor: Recruiting workers Training (most were illiterate) Discipline/Motivation Wage incentives (the “carrot”) Punishment or fines (the “stick”) Use of religious morals and values to create the proper work attitudes and behaviors (the “factory ethos”) Finding qualified managers The Luddite movement – machine breaking Developing Managers No body of management knowledge existed The general view of leadership depended on character of the leader and personal traits James Montgomery – first management texts of managerial advice: How to discern quality & quantity of work How to adjust & repair machinery How to keep costs down How to “avoid unnecessary severity” in disciplining subordinates Management Functions in the Early Factory Planning operations Planning against worker organization and Luddites Planning of power sources and connections Planning flow of work Cultural Consequences of the Industrial Revolution Condition of the Worker Economists Thomas Malthus and David Ricardo view worker condition as dismal and inevitable Robert Owen, Karl Marx, and Friedrich Engels saw people as powerless in their environment Rise of capitalism released people from drudgery Incentive plans, steady employment and regular hours improved worker well-being Workers’ real wages and conditions Cultural Consequences of the Industrial Revolution Child and Female Labor Primarily found in the textile industry Entrepreneurs ranged from exploiters to good employers such as Josiah Wedgwood, Matthew Bolton, James Watt and Robert Owen Contradictory evidence, religious and moral concerns affect understanding of the true situation Over time, legislation and capitalism made it uneconomical to employ children Industrial capitalism created a method to Cultural Consequences of the Industrial Revolution Industrial Revolution inherited worker poverty Industrial efficiency reduced prices of goods and raised real wages Child and female labor existed long before factories began Victorian values of keeping women at home created the atmosphere for critics of the factory system like Charles Dickens Industrial Revolution – Summary Wages were rising Infant mortality was declining Machinery replaced some drudgery Began to improve people’s standard of living Summary The Industrial Revolution created a new cultural environment and new management problems Organizations changed by infusions of capital, division of labor, and the need for performance The role of the entrepreneur-manager and its need was recognized ... version of a Watt double-acting steam engine, the steam engine that propelled the Industrial Revolution in Britain and the world, located in the lobby of the Superior Technical School of Industrial. .. cultural environment and new management problems Organizations changed by infusions of capital, division of labor, and the need for performance The role of the entrepreneur-manager and its need was... and Luddites Planning of power sources and connections Planning flow of work Cultural Consequences of the Industrial Revolution Condition of the Worker Economists Thomas Malthus and