Examined management thought prior to the scientific management era in the . Early civilizations placed a low value on economic activity. The technical and cultural changes of the Industrial Revolution presented managerial problems in : organizing, motivating people, and fusing people and processes. | Industrial Growth and Systematic Management Chapter Six Industrial Growth and Systematic Management Growth of enterprise was facilitated by transportation and communication revolutions as well as manufacture by interchangeable parts. Alfred D. Chandler Jr. Andrew Carnegie Systematic Management The Changing Environment Alfred D. Chandler, Jr. (1918-2007) Chandler wrote about the evolution of . Corporations in 1962 book Strategy and Structure. He developed his ideas from the study of . corporations during this period. Alfred D. Chandler, Jr. Courtesy of Harvard Business School Alfred D. Chandler, Jr. Described the late 19th century as the accumulation of resources with growth occurring because of: Horizontal combinations of firms in smaller fields Vertical integration – forward and backward Larger firms and the growth of hierarchy of managers to coordinate and integrate operations were the result. Key to success was good management, not size. Andrew Carnegie (1835-1919) Steel Industry Learned McCallum’s system of management on the Pennsylvania Railroad. Used the new Bessemer furnace technology to begin vertically and horizontally integrating his firm in the steel industry. Used cost accounting to guide his pricing strategy and drive costs down. Andrew Carnegie Courtesy of The General Libraries, The University of Texas at Austin. Andrew Carnegie - Steel Industry He increased the “throughput” velocity to gain economies of scale and to fully utilize his resources. The result was a declining price of steel for the consumer. Andrew Carnegie’s first job was in a textile mill like this. The Renaissance of Systematic Management Mechanical engineers (especially Henry R. Towne) became important in improving factory operations – they often became the managers. Numerous others began to take an interest in management. The idea that good management was critical in a firm gained credence with engineers and economists. Economists Edward Atkinson – management made a difference | Industrial Growth and Systematic Management Chapter Six Industrial Growth and Systematic Management Growth of enterprise was facilitated by transportation and communication revolutions as well as manufacture by interchangeable parts. Alfred D. Chandler Jr. Andrew Carnegie Systematic Management The Changing Environment Alfred D. Chandler, Jr. (1918-2007) Chandler wrote about the evolution of . Corporations in 1962 book Strategy and Structure. He developed his ideas from the study of . corporations during this period. Alfred D. Chandler, Jr. Courtesy of Harvard Business School Alfred D. Chandler, Jr. Described the late 19th century as the accumulation of resources with growth occurring because of: Horizontal combinations of firms in smaller fields Vertical integration – forward and backward Larger firms and the growth of hierarchy of managers to coordinate and integrate operations were the result. Key to success was good management, not size. Andrew Carnegie (1835-1919) Steel .
