This is perhaps the first organizational chart ever made
McCallum created the organizational chart to explain the Erie Railroad Operation
Erie Railroad Organization Chart of 1855. Library of Congress, Haer, N.Y.
A Broader Management View
Editor of the American Railroad Journal
Became “conscience” of first U.S. big business
Looked for broader principles of railroad operations (financing, regulation, and role of U.S. Railroad in life)
Developed three principles based on McCallum’s ideas: organization, information, and communication
Henry Varnum Poor
In later work, Poor felt the answer to problems of top management was through better leadership
Unity in the organization
Selecting leaders on merit
Developing better information systems
Courtesy of Pics4Learning. http://pics.tech4learning.com
Early industries were partnerships or sole proprietorships.
Railroads, requiring large amounts of capital, saw the growth of joint-stock companies.
Without uniform, adequate laws in Great Britain, management malfeasance occurred.
Henry Poor wrote about the need for government regulation but not control.
From independence to 1860, the U.S. grew and developed industry.
Period was critical to development of the modern enterprise.
Railroads and the telegraph allowed firms to grow for economies of scale and scope.
Managers were required for large, complex organizations.
Quality of life for people was improving.
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.
The Changing Environment