Industrial Revolution - Seminar One

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250 employees – largest factory in the U.S. until after the Civil War.

Organized by Colonel Roswell Lee in 1815.

Used piece rate incentive payments and accounting system.

Labor was more specialized.

Uniform standards promoted interchangeability of parts.

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Slide 9

The American System of Manufactures

Ideas spread to other areas of manufacturing.

Ex: The reaper by Cyrus McCormick

The “American System” received its name at the exposition of 1851 in London.

U.S. factories remained relatively small.

The McLane report of 1832 found the firms were mostly:

Family owned and managed

Few corporations – unlimited liability

Little use of steam power

Similar to findings of Andrew Ure regarding English firms

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Slide 10

The Railroads: Pioneering in U.S. Management

First “big business” in the U.S. – developed c. 1830.

Started the transportation revolution.

Facilitated U.S. industry move from local markets to national markets.

Railroads had size and complexity.

Required a management system.

Courtesy of Association of American Railroads (AAR)

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Slide 11

Communication Revolution

Telegraph, patented by Samuel Morse in 1837, started concurrent revolution in communication.

By 1860, about 50,000 miles of wires extended over the eastern U.S.

Dramatic effect on business communication.

Facilitated U.S. industry move from local markets to national markets.

Richard Sears used the telegraph to see gold watches – the first electronic commerce.

Samuel Morse

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Slide 12

The Age of Rails: Daniel McCallum (1815-1878)

Developed a system of managing on the Erie Railroad:

Specific job descriptions

Accurate performance reports

Merit basis for pay and promotion

Organizational chart to show lines of authority, responsibility, and communication

Use of telegraph for dispatching trains and checking on performance

Daniel McCallum, Circa 1865

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Slide 13

Daniel McCallum

System of management relied on division of labor, personal responsibility, and organization.

Developed a formal organization chart.

Developed highest state of the art information management.

Lost his job when the locomotive engineers would not follow his rules.

Workers were on strike for ten days in June 1854 then 6 months in 1857 in defiance of McCallum’s system.

Successful career building bridges and served as master of the Union’s railroads in the Civil War.