Industrialization
  • Technology
    • Electrical
      • Thomas Edison, George Wesinghouse, Nikola Tesla
      • Made incandescent bulb and alternating currant (AC) to carry electricity long distances
    • Ford's Model-T, 1909
      • 1st mass-produced
      • Cheap enough for middle-class families
      • STIMULATED the economy- metal, glass, rubber, petroleum, coal, iron-ore… etc.
      • Built Detroit, 4th largest city, 11th largest city today
      • River Rouge plant the largest factory in the world
      • Between 1910 and 1914, production time dropped 90%— 12 hours per car to 1.5
        • allowed them to slash prices by 70%
      • 1913, first moving assembly line
        • Increased production speed- only foremen could speed up or slow down
        • Workers tried to unionize to have a say in production speed, but most just quit
        • Employee turnover was at 370% a year
      • $5 a day policy
        • Double average manufacturing wage
        • Young workers came to Detroit
        • Increased production allowed company to absorb wage increase
      • Set up a sociology department (“HR”)
        • Collected info on jobs, families, etc.
        • Sent social workers to homes to “improve” their lives
        • Offered housing subsidies, medical care, other benefits
  • Mass-production called for corporate growth
    • Increased production, decreased prices
    • Replace skilled workers with machines
    • Only profitable if large quantities
    • James Buchanan Duke
      • Not enough people smoked to make mass-production of cigarettes profitable
      • Advertised aggressively
      • Established regional sales offices
  • National network of telegraph lines
  • Corporate consolidation
    • Railroads lead the way in forming “pools”
      • Shared info on costs and profits
      • Set rates
      • Illegal under the 1890 Sherman Antitrust Act (see Antitrust Movement)
      • Didn't succeed long, depended on voluntary actions
  • Mergers
    • Again, James Duke led the way
      • he and 4 competitors merged to form the American Tobacco Company
  • Revolution in Management
    • Senior managers— Long-term planning, took over from owners
    • Middle managers— Day-to-day operations, managed people, new middle
    • Research departments
      • modeled on Thomas Edison's laboratory in Menlo Park
    • Scientific management, now required university training
      • Arranged machinery and workers for maximum speed
      • Frederick Winslow Taylor
        • The Principles of Scientific Management, 1911
        • Chief engineer at Philadelphia Midvale Steel Company in 1880's
        • Recorded every action workers made, how often and how long it took
Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License