THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION

Electronic Resource by:Regina Greenwood and Julia Teahen

Management Pioneers in the Early Factory

Chapter Four

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 FranceThis illustration of power loom weaving

appeared in Edward Baines's The History of Cotton Manufacture in Great Britain

(1835)

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.

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.

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.

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”

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.

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

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

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

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

Augusta Ada Byron (1815-1852)

Countess of Lovelace

Programmer Contributor in

describing the operations of the computer

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

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

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).

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.

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?

Ure’s 1833 SurveyAndrew Ure Hall accessed December 1, 2008 at http://flickr.com/photos/70204815@N00/405674697

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.

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.

Why did management fail to develop during this period?

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.

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.