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Industrial Revolution - Seminar One
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Slide 14

Erie Railroad Organizational Chart

Erie Railroad Organizational Chart

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.

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Slide 15

Henry V. Poor (1812-1905)

Henry V. Poor (1812-1905)

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

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Slide 16

Henry V. Poor

Henry V. 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

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Slide 17

Emerging Governance Issues

Emerging Governance Issues

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.

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Slide 18

Summary

Summary

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.

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Slide 19

Chapter Six

Chapter Six

Industrial Growth and Systematic Management

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Slide 20

Industrial Growth and Systematic Management

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.

Andrew Carnegie

Systematic Management

The Changing Environment

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Slide 21

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