The Political Environment

The Economic Environment

The Social Environment

The Technological Environment

CHAPTER TWELVE: Scientific Management in Retrospect

The Political Environment

Balancing Themes Need to establish equity and order

to protect one person from the other.

Need to limit governmental power to protect a person from the state.

Where was the “balance” during the scientific management era? Where is it now?

Triangle Shirtwaist Factory Fire http://www.youtube.com/watch?v=yYo

uiwyABS8

HW Discussion Question

Explore the Triangle Shirtwaist Fire website. What was the most interesting or compelling piece of historical evidence you found on the site? Why did this piece of evidence have an effect on you?

http://www.ilr.cornell.edu/trianglefire/

In-Class Discussion Question

We discussed fire safety as an issue that was addressed in organizations as a result of the Triangle Shirtwaist Fire. What are some current issues related to worker protection & safety? What are the problems employers face in addressing these issues? Is government action the best way to address the issue? Why or why not?

The Political Environment

Reform movements Minimum wage, workers comp, unions

Populism Farm-based movement of the late 1800s. Grew into a joint effort between farmer and labor groups

against big business. Progressivism

Movement in the late 1800s to increase democracy in America by curbing the power of the corporation.

Fought corruption in government and business. Worked to bring equal rights for those left behind during

industrialization.

The Political Environment

Theodore Roosevelt Believed the dominant issue

before the federal government was its relationship with big business.

Pressed for government regulation of corporations and an end to unfair pricing practices.

Considered labor unions a good way to keep the actions of big business in check.

Carried out 44 antitrust prosecutions

Theodore Roosevelt, courtesy of the Constitution

Society

The Economic Environment

Transition – agrarian to industrial SM – better utilization of resources Workers prospered –

wages and hours Increased longevity Opportunity to improve skills

Organizational Growth Managerial hierarchy, staff specialists,

systematic management Phases of industrial growth

Phase I – Resource Accumulation (see also Chandler) Phase II – Resource Utilization (Chandler and SM)

The Economic Environment America was uniquely diverse

1890-1920: Immigrants were 80% of New

York’s population. More Irish lived in the US

than in Ireland. 71% of Ford’s labor force was

foreign born. Developing systems and

procedures and standardization was more important with the heterogeneous workforce.

Productivity increased due to: Methods of mass production. Taylorism (Scientific

Management) Cheaper sources of power

The 1909 Model T.

The Social Environment Success Ethic

Self-directing High need for achievement Inner-directed Protestant ethic characteristics

The Collision Effect Closing of the Western Frontier Welfare Movement/Progressivism

Taylor’s “cooperation, not individualism” bridged the gap between the social and individualistic ethics.

The Technological Environment

Enterprises developed and grew – 247 of the Fortune 500 were founded from 1880-1929.

New technologies developed: Bessemer process in

steel Oil refining Internal combustion

engine Synthetic material Telephony Electric energy

Bessemer process in steel

The Technological Environment

The automobile changed people’s lives and created a new industry.

Henry Ford, Charles Sorenson and their associates at Ford created the moving assembly line for mass production. 1910 – 2,773 workers

produced 18,664 cars 1914 – 12,880 workers

produced 248,307 cars

Henry Ford

Summary of Part Two Taylor was the focus for a deeper

philosophy of managing human and physical resources in a more technologically advanced world.

Taylor’s disciples improved productivity and service to society.

Fayol and Weber, Taylor’s contemporaries, also reflected a rational approach to enterprise.

Taylor and his followers were affected by and did affect the times.

Review of key concepts-1 (Answers in red)

Systematic soldiering Lump of Labor Strong engineering and analytical skills and

worked with Taylor Carl Barth Classifying basic hand motions Frank Gilbreth Gospel of Efficiency/ Municipal organizations Morris Cook Industrial psychology SM, Munsterberg, Taylor, Experimental

psychology

Review of key concepts-2

Industrial sociology Social Gospel, worker well-being,

Whiting Williams, and social Darwinism Individual worth in terms of your job/

earnings as a means of social comparison Whiting Williams Fayol divides authority Formal and personal Rationalization of resource utilization Alfred Chandler and SM agreed on

Review of key concepts-3 Social Gospel view about unions Unions are instruments of social and economic

reform The collision effect was impacted by Closing of the Western frontier and

progressivism Phase that US entered at the beginning of WWI Rationalization of resource utilization Why do workers soldier Human nature, unemployment would rise, rule-

of-thumb work methods, poor management

Review of short answer concepts Chapter 7

Taylor’s incentive system and his perspective on profit sharing

Chapter 8 Discuss your experience with the group

exercise applying the Gilbreth motion study techiques.

Chapter 9 Personnel management and Dual Heritage;

explain what the dual heritage consists of and give examples of how this impacts modern organizations

Review of short answer concepts Chapter 10

Pick three of Fayol’s principles of management and explain them; why are they important in the Information Age? Be specific.

Chapter 12 Pick one of the environments from the

turn of the century (1900); political, social, technological and economic and discuss the key aspects and how they impacted industry during that era.