THE EVOLUTION OF MANAGEMENT THOUGHT, 6 TH EDITION

1. THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen

2. Chapter Four Management Pioneers in the Early Factory

3. Management Pioneers in the Early Factory • Robert Owen – problems in human terms • Charles Babbage – systematic management • Andrew Ure – trained managers • Charles Dupin – took Ure’s ideas to France This illustration of power loom weaving appeared in Edward Baines's The History of Cotton Manufacture in Great Britain (1835)

4. Robert Owen (1771- 1858)Utopian Socialist • Learned about management by observing and trial and error on the job. • At New Lanark he advocated more labor intensive agriculture, using a spade rather than a plow. • He did not believe industrial progress was adequate to feed the growing population.

5. Robert Owen • Contributions • Reformed the factory system by improving workers’ working & living conditions. • Employed child labor but worked to get a law passed to regulate hours of work. • “Silent Monitor” which relied on peer pressure or public knowledge of performance vs. corporal punishment. • Philosophy was to invest in the “vital machines” as a means of increasing profitability.

6. Robert Owen’s Philosophy • Entrepreneurs should invest in the “vital machine” (people) as a means of increasing profitability. • Individuals were “creatures of their environment;” character developed if the material and moral environment was proper.

7. Owen’s Communal Society • All would share equally, regardless of contribution • There would be no division of labor • There would be no wage system; payment was in “labor credits”

8. New Harmony A bird's eye view of a community in New Harmony, Indiana, United States, as proposed by Robert Owen. Engraving by F. Bate, London 1838.

9. Robert Owen - Biographical Notes • Self-made, successful entrepreneur • Founded his first factory in Manchester, England at age 18 • Established New Lanark, Scotland partnership with new vision in 1795 • Applied new ideas about the welfare of society to the workplace • Established utopian community New Harmony in Indiana, USA

10. Charles Babbage (1792-1871)Irascible Genius • Never a manager, however a keen observer of the factory and a brilliant inventor and scientist. • The Difference Engine – a mechanical calculator • The Analytical Engine – the first computer • Conceived an early 19th century printer • Charles Babbage Institute

11. The Difference Engine Rizalar, Suna. History and Theory of Multimedia and Animation. (Accessed November 30, 2008) http://web.arch.usyd.edu.au/~sriz8189/computing7.html

12. The Analytical Engine Rizalar, Suna. History and Theory of Multimedia and Animation. (Accessed November 30, 2008) http://web.arch.usyd.edu.au/~sriz8189/computing7.html

13. Augusta Ada Byron(1815-1852) • Countess of Lovelace • Programmer • Contributor in describing the operations of the computer

14. Babbage’s Contributions to Management Thought • Scientific, systematic approach in analyzing industrial operations • Descriptive cost accounting (not standard costing that Emerson developed later) • Mutual interests between the workers and management • Bonus for suggestions to improve operations – first of its kind • Profit sharing – idea from MaisonLeClaire, Parisian house painting firm

15. Andrew Ure(1778-1858)Management Education Pioneer • First “teacher of management” • Well known scientist – his courses attracted those seeking technical knowledge to obtain a managerial job Andrew Urecourtesy of StrathclydeUniversity Archives OP4/18

16. Andrew Ure • Ure wrote about the operations of the factory including: • Admonishing the workers to accept the introduction of machinery. • Organizing the factory into an “organic system” of “the mechanical, the moral and the commercial” (production, personnel, and sales & finance areas).

17. Andrew Ure • Had an early notion of the task of the general manager to integrate the parts to contribute to the whole (organic system). • Defended the factory claiming it enabled more benefits to society. • Believed that workers were generally non-appreciative of management’s efforts. • Defended the factory system using comparison data from the cotton mills of 1833 and 1804.

18. Ure’s 1833 Survey In Ure’s 1833 survey of cotton mills, note the continuing use of water power, the percentage of female employees vis a vis males; and the percentage of employees age 18 and under and over 18. What does his survey tell us about industrial progress some 50 years after the introduction of the steam engine? Andrew Ure Hall accessed December 1, 2008 at http://flickr.com/photos/70204815@N00/405674697

19. Charles Dupin (1784-1873)Industrial Education in France • Taught courses similar to Ure’s management classes in France. • Unique Insights • Technical/manual work was different from managing others – “Special Study” • This “Special Study” could be taught rather than gained by experience alone. • Technological advancement did not lead to unemployment. • Through education, workers could share in industrial prosperity.

20. Charles Dupin • Was influenced by colleague Jean Baptiste Say, industrial economist. • Influenced the work of Henri Fayol indirectly. • His materials on management and his Discourssur le Sort des Ouvries, published in 1831, influenced thousands in France.

21. Why did management fail to develop during this period?

22. Why did management fail to develop in this period? • Early writings emphasized techniques and not managing. • The period was dominated by the inventor-pioneer. • Illiteracy and difficulty in disseminating knowledge prevented practicing managers from knowing the works of Owen, Babbage, Ure, and Dupin.

23. Summary • The genesis of modern management can be found in Great Britain and France after the Industrial Revolution: • Robert Owen searched for harmony between the human facto and the age of machines. • Charles Babbage applied a scientific approach to management. • Andrew Ure taught and developed managers in Glasgow. • Charles Dupin taught management courses in France.